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WaveRider Communications Inc.: Pioneering Wireless Internet Solutions Since 1997

Founded in 1997, WaveRider Communications Inc. aimed to lead the wireless information technology market by developing innovative products for wireless internet service providers. With $27.5 million raised for R&D and operations in over 30 countries, the company introduced significant products like the NCL 135, a high-speed router, and the LMS, designed for last-mile wireless access. Despite strong competition and rapid internet growth, WaveRider faces challenges in business development and resource allocation. This case explores their strategic options in a dynamic broadband access landscape.

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WaveRider Communications Inc.: Pioneering Wireless Internet Solutions Since 1997

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  1. Cmpe 472 Case II in E-commerce Architecture

  2. WaveRider Communications Inc. • Founded in 1997 • To become the leader in the global wireless information technology by developing, selling and supporting products that enabled wireless internet service providers • Raised $27.5 mm for R&D • Signed agreements and installations in over 30 countries • Over 100 employees

  3. WaveRider Communications Inc. • Did not have enough resources to develop business opportunities • Had partnerships with resellers and technology installers • Launched two products • NCL • LMS

  4. WaveRider Communications Inc. • NCL 135 • First product • A wireless high speed router that provided secure, reliable connections to corporate networks • Designed to replace ISDN lines onsite • If the customer had two offices and one of the had a LAN with digital subscriber line (DSL) internet access, then NCL 135 would allow both offices to share the internet connection wirelessly • Launched the second version, NCL 1135, enabling broadband connections for LAN-to-internet and LAN-to-LAN applications.

  5. WaveRider Communications Inc. • LMS • Designed to provide ‘last mile’ wireless internet access to a consumer • Targeted at wireless ISPs • Network access points that accessed fiber lines • Communication access points that accessed a network within a 10-mile radius, and modems to end-user computers • Used licence free radio technology in the 2.4GHz spread spectrum frequency band.

  6. WaveRider Communications Inc. • The internet access industry: • Demand for broadband access • High internet traffic doubling every 6 months • Consumers required access at speeds higher than the 128 kbps (ISDN) • Factors driving demand: • Internet growth and increased traffic • An increase in demand for overall connectivity • Upgrades to existing infrastructure as technology improved • Privatisation and deregulation which drove increased competition • Wireless required less infrastructure and less installation

  7. WaveRider Communications Inc. • Factors that kept competition at the local ISP level: • Equipment and ISPs neglected the wireless space until mid 1998 when a new regulation re multichannel multipoint distribution service (MMDS) spectrum (2.5GHz) to permit two-way transmission • Point-to-multipoint wireless development had not progressed rapidly. Reliable equipment had just started to enter the market • Wireless connections had negative perception as a result of the high drop call rate of cellular phones.

  8. WaveRider Communications Inc. • The Wireless Internet Access Competitive Environment • Access through fiberoptic lines, sattelite, cable modem, DSL • Competitors • Adaptive Broadband • AirSpan • BreezeCOM • Cisco Systems • Lucent Technologies • Motorola • Nokia • Wi-Lan

  9. WaveRider Communications Inc. • Questions to be answered: • What are the shortcomings of wireless access? • What are some of the customer barriers to overcome? • The existense of various broadband access technologies coupled with rapidly growing demand for high-speed access gave some interesting options to WaveRider: • Should they consider either a marketing of technical alliance or a combination of both? • If that is the case which technology should WaveRider form an alliance with?

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