Low investment costs making WiMax an attractive option
Low investment costs making WiMax an attractive option
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WiMax set to transform global telecoms

Gartner warns of significant impact on the industry

Robert Jaques, vnunet.com 18 Feb 2005
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The ability of WiMax wireless broadband to compete with DSL and cable modem services without the need for heavy regulation will have a significant impact on the telecoms industry, analysts have predicted.

According to In-Stat, low network investment costs, and non-line-of-sight operation over licensed or non-licensed radio spectrum makes WiMax an attractive technology.

However, the analyst group warned that the success of WiMax, which supports point to multi-point broadband wireless access rates up to 2Mbps over a coverage area of three to five miles, remains uncertain.

Keith Nissen, an analyst with In-Stat, said: "Consumer broadband markets cannot support an unlimited number of broadband wireless access service providers.

"Increased broadband competition, price compression and high subscriber acquisition costs threaten to drive margins ever lower."

In-Stat's report stated that, by 2009, approximately three per cent of total broadband subscribers, or 8.5 million worldwide, will be using WiMax-based broadband wireless access services. Nearly 4.5 million of these will also subscribe to Voice over WiMax services, according to the study.

The analyst firm predicted that a maximum 15 per cent market share is likely available to broadband wireless access operators in metropolitan areas.

It also noted that emerging country markets typically have antiquated technology and limited public network capacity, making WiMax particularly attractive.

See also:

WiMax faces stiff competition from established wired and wireless rivalsExperts disagree on pretty much everything  20 Apr 2005
WiMax is tipped to become a popular mobile broadband technology, but hurdles remain  14 Apr 2005
Enhanced 802.16e equipment will arrive shortlyBT likely to deliver wide area wireless services in the UK by next year  13 Apr 2005
Bluetooth likely to be phased out in favour of wireless LansShort range wireless technology the next casualty, warns analyst  22 Mar 2005
Broadband kit sales hit $4.6bn in 2004Household kit sales jump 73 per cent in 2004  04 Mar 2005
Intel Developer Forum 2005Newly developed chipset a third smaller than in Centrino notebooks  03 Mar 2005
Intel Developer Forum 2005'Ticking time bomb' as US loses out to competitors  03 Mar 2005
Delay to ratification unlikely to affect roll-outsDon't panic, advises ABI Research  24 Jan 2005
Intel gives WiMax a boostChip firm teams up with Chinese firm ZTE  12 Jan 2005
Boost for WiMax technologyLucent, LG Electronics and Huawei swell growing ranks of WiMax Forum  08 Nov 2004

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