Matthew Engel

XOHM is a new mobile internet technology which was officially released this week on Monday, September 29, 2008. I found about about it on Friday, 5 days later as I was shopping for a new highspeed internet provider for my home. As a current Cablevision customer, I am unsatisfied with the cost of my service, which has recently increased from $29.99/mo to $49.99/mo.

This led me to search for a new service, and I called just for comparison’s sake a T1 provider, who was extremely knowledgable. Apparently, a T1 line at the minimum costs $300 a month providing stable IP addresses and at least 1.5 mps (megabytes per second) for both up and downloadong files. I definitely, don’t need this service, however it would be appropiate for a corporate account. The sales person recommended I check out WiMAX (Worldwide Interoperability for Microwave Access) which is being provided by XOHM using the 802.16e protocol. XOHM is currently running its platform off Sprint cell phone towers, and is partially financed by Sprint and Google, Inc among other equity stake holders. What is XOHM? For $25/mo XOHM provides ‘broadband’ like speeds to a mobile device such as a laptop or tablet PC that is within range of the XOHM network. The currently claimed speeds are between 2-4 mps for downloads and 0.5-1.5 mps for uploads. The $30 price package lasts 6 months, at which point the cost becomes $45/mo with NO CONTRACT!! This is a huge deal! (For all you newbies, uploading refers to the act of putting files up on the internet, usually on some sort of server. For example, sharing files with your friends via FTP or giving away files on BitTorrent are examples of uploading. If you don’t understand what I’m talking about, then don’t worry you probably don’t do it anyway, but understand it is the opposite of downloading. Out current  infrastructure is optimized for downloading files from the internet, i.e. viewing webpages and is therefore much faster in this direction).

Accoding to Wikipedia “Sprint Nextel announced in mid-2006 that it would invest about US$ 5 billion in a WiMAX technology buildout over the next few years.^[6] Since that time Sprint has been dealt setbacks in defections of (Nextel) iDEN and 3G subscribers that have resulted in steep quarterly losses and led to a management shake up with Dan Hesse as its new CEO. On May 7, 2008, Sprint, Clearwire, Google, Intel, Comcast, and Time Warner announced a pooling of 2.5 GHz spectrum and formation of a new company which will take the name Clearwire.” Apparently, Sprint has been losing their profit margin as Nextel subscribers fade. They are investing in mobile internet technologies, properly so. However, forming larger private comglomerates may not be optimal for the customer if it leads to price fixing monopolies, but hopefully will come with a wave of new technological developments.

Currently, XOHM allows you to choose a PCI card, USB adaptor or laptop with built in WiMAX technology. The WiMAX PCI card could be switched from one machine to the next, giving internet access to any computer you choose that has the installed software package. Essentially, internet service, is tied to the card. It should also be noted that a less expensive home service is offered which requires a specific XOHM modem (80$) instead of the PCI card, for only $25/mo which becomes $35/mo after 6 months. You can cancel your service at any time. These speeds are roughly equivalent to High Speed internet access provided by Verizon which travels through existing phone lines. These are not fiberoptic cables, but rather copper wiring which can provide 3/1.5 mps (3 down/1.5 up). It should be noted, that for more cost, Verizon also offers Fios at 3 speeds: 10/2 ($42.99/mo), 20/5 ($52.99/mo), and 20/20 ($64.99/mo). The last package would only be appropiate for individuals uploading massive quantities of data. According to the Verizon rep I spoke with the most popular service in my area is 20/5 which hits the ~$50/mo price point. However, note that all these services require a CONTRACT!! How many times have I wished I could change cell phone providers effortlessly without violating my one or two-year agreement. It is impossible to get a cell phone plan now without these types of ridiculously cumbersome contracts. It prevents customers from jumping on the newest technology or nabbing deals offered by competitors. I hate it!

The picture above is of a Nokia N810 Internet Tablet, WiMAX Edition roughly $449. I think this is incredibly overpriced. Note that for a relatively cheap (~$100) PCI card you can turn your exiting laptop into a highspeed internet powerhouse! This is definitely the way to go, as I have often wanted internet access in my car to access emails or directions while on the road.

In summary, I think this could be a great service for people who need the internet on while traveling. It is a great technology and you should keep your eye on and your ears open for WiMAX this coming year. But you should know, as of right now it is only available in Baltimore, MD. XOHM is planning on moving into the Chicago and Washington DC markets throughout the next year. I asked if NY was on the horizon, but got no commitment from the consultant I spoke to.