Data Transmission Rates & WiMAX Service Rates

Data transmission rate refers to the amount of digital information that is transferred over a transmission medium over a specific period of time and is commonly measured in the amount of bits that are transferred per second (e.g. bps, Mbps).

The data transmission rate for WiMAX systems varies based on factors including radio channel bandwidth (1.25 MHz to 28 MHz), modulation type (BPSK, QPSK, QAM) and channel coding type (percentage of bits dedicated to control and error protection). The raw data transmission rate of a WiMAX radio channel can be in excess of 155 Mbps using QAM modulation. The allocated data transmission rates to each user are typically 1 to 3 Mbps allowing WiMAX operators to have several hundred subscribers for each RF channel.

WiMAX Service Rates

A rate plan is the structure of service fees that a user will pay for services. Rate plans are usually divided into monthly and usage fees.

In the early 2000s, wide area wireless systems (e.g. mobile telephone systems) were limited to relatively low data transmission rates (regularly below 20 kbps). Users were often required to pay for bandwidth on a time or usage basis. Consequently, the cost of this data transmission was approximately 10 cents per kilobyte ($100 per megabyte).

The ability of WiMAX systems to provide high data transmission rates with a limited amount of equipment allows for a substantial reduction in operation cost which thereby leads to significant lowering of service rates. The service rate cost for WiMAX systems in 2006 was approximately 2 to 3 cents per megabyte (99.97% lower than mobile data rates in the mid-1990s).

Figure 1 shows a sample wireless broadband service rate plan for a specific WiMAX system in 2006. This example shows that users may select from 3 rate plan options; basic, standard or premium. Each rate plan has a maximum downlink and uplink data transfer rate associated with it along with a monthly service fee. The amount of allocated data that can be transferred as part of the rate plan (at no cost) may be limited (e.g. 100 MByte maximum) or it may be unlimited (e.g. premium plan). If the user exceeds the allocated data transfer amount for their selected rate plan, they are charged a usage fee (e.g. 2 to 3 cents per MByte). In addition to the service fees, WiMAX service providers may charge a connection fee (setup fee) and there may be a leasing charge for equipment that is provided by the WiMAX service provider (e.g. WiMAX modem).

Figure 1: Sample Wireless Broadband Service Rate Plan 2006