WiMAX operates on the same general principles as WiFi -- it sends data from one computer to another via radio signals. A computer (either a desktop or a laptop) equipped with WiMAX would receive data from the WiMAX transmitting station, probably using encrypted data keys to prevent unauthorized users from stealing access.
The fastest WiFi connection can transmit up to 54 megabits per second under optimal conditions. WiMAX should be able to handle up to 70 megabits per second. Even once that 70 megabits is split up between several dozen businesses or a few hundred home users, it will provide at least the equivalent of cable-modem transfer rates to each user.
The biggest difference isn't speed; it's distance. WiMAX outdistances WiFi by miles. WiFi's range is about 100 feet (30 m). WiMAX will blanket a radius of 30 miles (50 km) with wireless access. The increased range is due to the frequencies used and the power of the transmitter. Of course, at that distance, terrain, weather and large buildings will act to reduce the maximum range in some circumstances, but the potential is there to cover huge tracts of land.
IEEE 802.16 Specifications
Range - 30-mile (50-km) radius from base station
Speed - 70 megabits per second
Line-of-sight not needed between user and base station
Frequency bands - 2 to 11 GHz and 10 to 66 GHz (licensed and unlicensed bands)
Defines both the MAC and PHY layers and allows multiple PHY-layer specifications
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