WiMax Australia have began the ball rolling with the regional pay TV provider Austar and wireless Internet supplier Unwired, these companies have signed a spectrum agreement to make WiMax Australia a reality.

A step closer to WiMax
WiMax, the common name for the 802.16 wireless broadband standard, is an alternative to cable and DSL (digital subscriber line). Compared with the popular Wi-Fi protocol that works in short distances, WiMax is said to be able to operate up to 50km.

According to the WiMax Forum, 802.16 will provide fixed, nomadic, portable and eventually mobile wireless broadband connectivity without the need for direct line-of-sight with a base station.

To start the ball rolling in Australia, regional pay TV provider Austar and wireless Internet supplier Unwired have signed a spectrum agreement to make WiMax Australia a reality, which is seen as a wise step by analysts.

Austrar traded a portion of its 2.3GHz licenses in return for some of Unwired's 3.5GHz licenses. The latter will also make a supplementary cash payment of $15 million to the pay TV company.

"It's a good deal. The lack of easy access to spectrum is one of the main issues we have with the take up of WiMax Australia," said Ovum research director Neale Anderson.

Gartner research director Robin Simpson agreed. "It's a smart move for Unwired because I think [it's] important spectrum for WiMAX.

"2.3 is better for urban areas. It has better building penetration than 3.5," Simpson said, adding Austrar has a business model and recognised brand in regional areas through its pay TV business.

In terms of availability, Ovum's Anderson believes fixed WiMax Australia could be a reality, from Unwired, by mid-2006.

As for pricing, it's still to early to tell. At the moment, Unwired's wireless Internet plans start from $16 for 32kbps.