Azulstar moves from Wi-Fi to WiMAX, but challenges remain

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Azulstar moves from Wi-Fi to WiMAX, but challenges remain

September 25, 2008 at 8:08 AM by Esme Vos

As we creep closer to WiMAX World (Sept. 29 - Oct. 2 in Chicago), the PR machines are working harder than ever, spitting out press releases on new WiMAX products and services. Today I read (again) about Azulstar’s new WiMAX service in Rio Rancho and Albuquerque (New Mexico) and Grand Rapids, Grand Haven, Ferrysburg and Spring Lake (Michigan).

To refresh everyone’s memories, Azulstar tried to roll out citywide Wi-Fi service in Rio Rancho and even bid on the Wireless Silicon Valley project, but decided to get out of the muni Wi-Fi market after finding it unprofitable. The city of Rio Rancho pulled the plug on Azulstar’s network, asked Azulstar to remove all of the wireless equipment attached to the poles and demanded that Azulstar pay over $33,000 in unpaid electric bills dating back to 2005. I do not know whether that dispute has been resolved.

Now, Azulstar has decided to get into WiMAX, which according to them is a much better way to serve communities such as Rio Rancho and Grand Haven (not densely populated, largely rural). But according to Glenn Fleishman, who posted an article back in May 2008, challenges remain because, among other things, the 3.65 GHz band that Azulstar is using for its service is “lightly licensed” (my terminology). The 3.65 GHz band is open to anyone who wants to deliver WiMAX service (no hefty license fees) but they all have to “play nice” (cooperate with one another).

There’s another challenge facing Azulstar: Clearwire. How Azulstar will compete in one community - Grand Rapids, Michigan - which is getting Clearwire’s WiMAX service remains to be seen. After all, why should I subscribe to Azulstar’s service in Grand Rapids when, if I subscribe to Clearwire’s, I can have access to Clearwire’s network all over the United States (and maybe abroad if Clearwire enters into roaming agreements with other WiMAX operators)?

Tags: azulstar, clearwire

Comments on “Azulstar moves from Wi-Fi to WiMAX, but challenges remain”

Tim Johnson Says:

September 25th, 2008 at 5:26 pm

Why does Azulstar keep getting press when they have failed so may times and have been kicked out of cities? It is like the Wall Street cronicles of the wireless industry. Also, Clearwire coming to Grand Rapids? It has only been a year or so since they promised that.

Esme Vos Says:

September 25th, 2008 at 7:03 pm

They keep getting press because the PR agencies of WiMAX equipment makers that supply companies like Azulstar (in this case, Alvarion) keep pumping out press releases.

I don’t know how good Azulstar’s service is since I do not live in the areas where they offer WiMAX service. I never used their Wi-Fi service in the places where they had a network so I cannot evaluate it. I hope, however, that people who are thinking of subscribing to their WiMAX service take into account the company’s track record.

Karl Says:

September 25th, 2008 at 8:57 pm

Airspan is the equipment vendor for Azulstar, not Alvarion.

Esme Vos Says:

September 26th, 2008 at 8:44 am

Karl,

The press release from Alvarion says that it is the WiMAX equipment supplier for Azulstar:
http://www.alvarion.com/presscenter/pressreleases/175857/

Esme Vos Says:

September 26th, 2008 at 8:48 am

Oh but wait, Redline is also supplying them with equipment according to THIS press release:
http://www.newswire.ca/en/releases/archive/September2008/25/c8196.html

Tyler van Houwelingen Says:

September 26th, 2008 at 10:07 am

To clarify, Azulstar is using both Redline and Alvarion for our WiMAX networks, not Airspan. Alvarion’s 16e mobile gear is being used in urban areas (like Grand Rapids, Albuquerque) while Redline 16d fixed gear is operating in the rural areas (like Rio Rancho and Grand Haven)

WiFi was a good start for muni wireless, but the fact is that the technology does not work very well, it is very expensive ($150k/sq mile) and slow to cover a city and the entire industry collapsed after Earthlink pulled the plug. My firm was not immune from this environment.

Azulstar is a quality and innovative firm that is adapting within a collapsed industry. Azulstar has over 5000 subscribers, the world’s longest running Muni WiFi network and now some of the first WiMAX networks fully operational in the USA. We have known that WiFi had limitations since we covered our first city and have been preparing for WIMAX ever since, this is not something we just happened upon.

Clearwire is an excellent firm and they will be successful. We see them setting their antennas next to ours in Grand Rapids and are aware we will compete. They are focusing on the mobile mass market (1-4Mbps) while we are focused on the high end fixed business market (3-100Mbps symmetric links).

I believe both firms will be successful and our investors believe this as well. WiMAX is what WiFi was hoped to be and is very much the real deal.

Tyler van Houwelingen
CEO Azulstar, Inc.

Esme Vos Says:

September 26th, 2008 at 11:23 am

Tyler,

Wi-Fi does work very well, but the business model that people are using today to cover large, sparsely populated communities is faulty. WiMAX may prove to be a better solution for rural areas in New Mexico and Michigan, but here’s the problem: there’s no incentive for WiMAX operators who paid a lot of money for spectrum licenses to spend even more money providing coverage in rural areas because there aren’t that many people who live there. When they bid for those licenses, they were thinking about how much they would make from urban, mobile professionals — the same people who can afford to pay $80 a month for Verizon EVDO service, cellular data plans from T-Mobile and AT&T, etc. So perhaps as you point out, this is a good opportunity for companies like yours.

But unlike Wi-Fi, there are hardly any devices that come with WiMAX. The only one I’ve seen is the Nokia N810 WiMAX-enabled tablet.

Former customer Says:

October 19th, 2008 at 2:16 pm

Azulstar Wi-Fi service in Rio Rancho, NM was chaotic at best. As time went along, their service went from mediocre to terrible, and finally stopped altogether. Much of the problem had nothing to do with technology. It was lack of effective management. The local office was simply closed and customers had to call the company’s main office in Grand Haven, Michigan to get service. Azulstar left the city owing more than $50,000 in unpaid electrical bills, refusing to remove their equipment, and simply abandoned their small customer base.

Recently, Azulstar has been throwing out press releases about WiMax being available in Rio Rancho. Nothing is further from the truth. Rio Rancho city hall has no knowledge of any such system. Does the term ‘vaporware’ ring a bell? Much ado about nothing.

RWSI Says:

November 1st, 2008 at 1:22 am

It’s a shame Azulstar gets away with whatever they can get away with. They still owe thousands to Rio Rancho for unpaid electric bills. Suckers who invest money to deploy not ready wimax at 3.65gHZ. Reno Nevada has a system up and reports of the network are mediocre at best.
3.65gHZ still does not penetrate trees and buildings any better than 2.4gHZ. By the way Azulstar has a system up in Rio Rancho but has little to no customers, what a waste of money for the little coverage. The wimax technology is still not ripe.

Vic Kovacs Says:

November 10th, 2008 at 10:15 pm

Let’s consider the port policy. You can see it on http://www.azulstar.com/ports/ . IT’s not very clear, but it looks like residential only gets web and mail. I run servers on the internet. How about SSH? What about incoming? Oh, and BitTorrent isn’t synonymous with illegal. I download Ubuntu images that way.

Yours trully Says:

December 1st, 2008 at 5:40 am

I used to work for Azulstar. In fact, I was falsely accused and angrily fired. The reason why is, they have unstable management with a unstable network. Blame goes to the newbie workers rather then the failed worthless network. Tyler goes threw workers like water. The truth is whether it be a tree, a stucco house, concrete or just interference from what ever signal, the whole network always fails over there, then works over hear, then fails over hear, then works over there. Because the equipment and technology is junk!!!

Yours trully 2 Says:

December 1st, 2008 at 5:41 am

I can go to my cell phone company and get there service at lower upload and download speed, but get perfect no dropped internet service. Why? It's all about the unlicensed “WEAK” Wi-Fi signal. And the stucco houses. The network will never work perfectly in all areas. Have some one from the city that gave them the contract drive around with a laptop and find a pole that has a antenna attached to it. Go to the customers and see if they’ve been having problems. Then get on there case about every complaint, daily!!! Or have a class action attorney do it. You will find about 1/3 don’t work even if you are directly under it!!! The whole city is has dead spots all over!!! They made a tragic error creating a unlicensed weak Wi-Fi network in a city that has 95% stucco houses! The wire mesh houses either deflect the signals all together or bounce the signals around. They need to leave the city and go back to grand rapids where there’s no stucco houses…. In other wards shame on you for taking cash from those who you know won’t ever get the perfect service you claim and can’t ever give them! I call that false advertisement or fraud! Someone needs to file a class action lawsuit!

Yours trully 3 Says:

December 1st, 2008 at 5:42 am

If you get service with your cell phone and can drive around in your area with out dropped service then you can get there internet service in the same area! They have the higher bands width equipment that burns threw houses better and you can drive for miles and never drop signals. By the way the cell phone companies already have nationwide coverage!!! I suggest you try them first!

MuniWireless

Azulstar moves from Wi-Fi to WiMAX, but challenges remain

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