The bandwidth and reach of WiMAX make it suitable for the following potential applications:
Broadband Access
Many companies are closely examining WiMAX for "last mile" connectivity at high data rates. This could result in lower pricing for both home and business customers as competition lowers prices.
In areas without pre-existing physical cable or telephone networks, WiMAX may be a viable alternative for broadband access that has been economically unavailable. Prior to WiMAX, many operators have been using proprietary fixed wireless technologies for broadband services.
WiMAX subscriber units are available in both indoor and outdoor versions from several manufacturers. Self install indoor units are convenient, but the subscriber must be significantly closer to the WiMAX base station than with professionally installed units. As such, indoor installed units require a much higher infrastructure investment as well as operational cost (site lease, backhaul, maintenance) due to the high number of base stations required to cover a given area. Indoor units are comparable in size to a cable modem or DSL modem. Outdoor units allow for the subscriber to be much further away from the WiMAX base station, but usually require professional installation. Outdoor units are roughly the size of a textbook, and their installation is comparable to a residential satellite dish.
Limitations
A commonly held misconception is that WiMAX will deliver 70 Mbit/s, over 70 miles (112.6 kilometers). Each of these is true individually, given ideal circumstances, but they are not simultaneously true. In practice this means that in Line of sight environments you could deliver symmetrical speeds of 10Mbps at 10Km but in Urban Environments it is more likely that 30% of installations may be Non Line of sight and therefore Users may only receive 10Mbps over 2Km. WiMAX has some similarities to DSL in this respect, where one can either have high bandwidth or long reach, but not both simultaneously. The other feature to consider with WiMAX is that available bandwidth is shared between users in a given radio sector, so if there are many active users in a single sector, each will get reduced bandwidth. However, unlike SDSL where contention is very noticeable at a 5:1 ratio (if you are sharing your connection with a large media firm for example), WiMAX does not have this problem. Typically each cell has a 100Mbps backhaul so there is no contention here. On the radio side in practice many users will have a range of 2,4,6,8 or 10Mbps services and the bandwidth can be shared. If the network becomes busy the business model is more like GSM or UMTS than DSL in that it is easy to predict the capacity requirements as you sign more customers and additional radio cards can be added on the same sector to increase the capacity.
Mobile applications
Some cellular companies are evaluating WiMAX as a means of increasing bandwidth for a variety of data-intensive applications; indeed, Sprint Nextel has announced in mid-2006 that it will be investing about US$ 3 billion in a WiMAX technology buildout over the next few years.
In line with these possible applications is the technology's ability to serve as a high bandwidth "backhaul" for Internet or cellular phone traffic from remote areas back to an internet backbone. Although the cost-effectiveness of WiMAX in a remote application will be higher, it is not limited to such applications, and may be an answer to reducing the cost of T1/E1 backhaul as well. Given the limited wired infrastructure in some developing countries, the costs to install a WiMAX station in conjunction with an existing cellular tower or even as a solitary hub are likely to be small in comparison to developing a wired solution. Areas of low population density and flat terrain are particularly suited to WiMAX and its range. For countries that have skipped wired infrastructure as a result of inhibitive costs and unsympathetic geography, WiMAX can enhance wireless infrastructure in an inexpensive, decentralized, deployment-friendly and effective manner.