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WiMAX set to take off

19 May 2004 News

From an operators' perspective, WiMAX, the new wireless broadband standard, can ease the financial burden of deploying and expanding a network. According to technology market research firm ABI Research, these cost advantages help both the smaller wireless Internet service providers (WISP) and the larger, regional and national players. For smaller WISPs, lower cost equipment reduces the breakeven subscriber point for a new tower. For those with grander plans, it says the cost efficiencies brought on by the new standard will allow a company to cover more ground at less cost.

While the business model for fixed broadband wireless operators is steadily improving, specific plans on service launches remains unclear. Operators, long known for keeping their plans under wraps, are not saying anything. But recent activity points to big things, says ABI.

A recent survey sent to nearly 400 WISPs worldwide showed some interesting trends. Over half of the respondents, with an average of just 765 subscribers, intend to deploy WiMAX equipment as soon as possible in order to lower overall equipment costs, both for customer premises equipment (CPE) and for base stations. The survey indicated that respondents are also not afraid to go after incumbents, says ABI. Over half mentioned that their initial service launches are in areas served by two or more competing technologies - for example, cable, DSL or T-1 access.

www.abiresearch.com





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