Monday, September 29, 2008

Xohm Launches in Baltimore

Sprint Nextel Corp.has  launched its Xohm WiMAX-powered service for mobile customers in Baltimore. Contract-free service options include a $10 day pass, $25 monthly home Internet service and $30 monthly laptop service. Xohm modems cost $60 for a laptop card, an $80 home modem and has average downlink speeds of 2 to 4 megabits per second.

“This is truly an historic day with the birth of a completely new Internet-based business model that alters the dynamics of the traditional telecom industry,” says Barry West, Xohm president. 

Xohm hasn't yet achieved that with the launch; it couldn't have done so. It has created a new packaging for mobile access pricing. The day pass, reminiscent of Wi-Fi day pass pricing, is helpful. The $30 card or dongle pricing does undercut rival pricing from other providers. Prices for tethered service are roughly in line with what Clearwire already was offering. 

So far, though, Xohm does not appear to differ much from fixed broadband service, save for the pricing level. Where it clearly hopes to pose a challenge is to contract-based voice service, but Clearwire isn't promising it is going to make that its battleground. Right now, it mostly looks like a less-expensive, contract-free version of 3G mobility service, with better throughput. 

That's not a bad thing by any means. Still, Xohm's rhetoric is ahead of its vision, at the the moment. There are lots of reasons. One business model Xohm really wants to create is a simple, low-cost, casual use model beyond the day pass. That will require the ability to discover and authenticate new devices registering to the network. That means creating means to deal with MAC addresses and IP addresses not already registered in its authentication servers as a "current customer."

Supporting the typical user input operations on smaller devices other than PCs is an issue, but probably not so much as the authentication of new MAC and IP addresses whose users want to register for some relatively-casual use of the Xohm network. That means processes for 
discovery, certification, and management of new devices on the WiMax network, when network usage might be quite episodic. Right now it probably just means supporting WiMAX modems, whatever the form factor. 

What Xohm really wants is the ability to authenticate and provide service to MP3 players, electronic book readers and other devices mobile networks have not had to deal with in the past. We might be a year away from that. 

And that's when Xohm will start to fulfill its promise.

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