Despite Challenges, Broadband Fixed Wireless Revenues to Increase 10 Fold, Reports Cahners In-Stat Group
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--June 11, 2001--Despite recent troubles stemming from slower than anticipated service rollouts for MMDS and financial difficulties among the larger LMDS service providers, broadband fixed wireless access (BFWA) will represent a substantial proportion of the broadband (wireline and wireless) market by 2005, according to Cahners In-Stat Group (http://www.instat.com).
Overall, the high-tech market research firm estimates that there are currently over 210,000 subscribers to broadband fixed wireless services throughout the world, including both enterprise and residential customers. While the BFWA market has suffered somewhat, by 2005 service provider revenues from BFWA are expected to increase by 10 times its current level.
"By most measures the Information Age has been severely hindered by the relatively slow deployment of 'last-mile' broadband services throughout the world and especially to enterprises, resulting in pent-up demand for high-speed data and advanced telecommunications services.
"By circumventing the costs and time associated with laying expensive fiber, broadband fixed wireless technology offers an excellent means by which to capitalize on the vast potential of the broadband market," said Becky Diercks, director of In-Stat's Wireless Group.
The market is segmented into three markets, based on spectrum allocation for services. These three markets are: Local Multi-point Distribution Services (LMDS); Multi-channel Multi-point Distribution Services (MMDS); and license-free fixed wireless services that comprise the Industrial Scientific and Medical (ISM) bands and the Unlicensed National Information Infrastructure (U-NII) bands.
MMDS will account for the primary growth in the BFWA market as Sprint and WorldCom increase geographic coverage over the coming years. Towards the end of this forecast period LMDS services and license-exempt services will play a more significant role within the market than they do today.
In-Stat also found that:
-- LMDS broadband services in the United States provide high data
rates, but only over a relatively short distance of three
miles. LMDS is primarily a solution for medium and large
businesses. The major drivers to the LMDS market are the cost
of network deployment compared to wireline deployment, the
flexibility of the network and the low service prices that can
be offered.
-- Compared to LMDS, MMDS provides slower data rates over longer
distances. The primary prospect base for MMDS services
includes the residential, small office home office (SOHO), and
small business markets. The major drivers to the MMDS market
include the vast untapped residential and small business
demand for broadband service and the ability of MMDS to
provide advanced services such as Quality of Service (QoS),
voice and video.
-- The license-exempt broadband fixed wireless market in the
United States targets residential, SOHO, small- and
medium-sized enterprises. The main benefit of license-exempt
service is that service providers don't have to buy expensive
licenses. The lack of required licenses in these markets,
however, results in an increased level of competition.
Increased competition has the positive impact of driving down
prices, and the negative impact of increased interference.
-- Worldwide BFWA service provider revenues will grow to more
than $3 billion in 2005.
The report, "Troubled Times for the Broadband Fixed Wireless Access Market" (No. MD0103ET), reviews and forecasts the Local Multi-point Distribution Services (LMDS), Multi-channel Multi-point Distribution Services (MMDS), and license-free fixed wireless services markets. Equipment and service vendor profiles are also included.
To purchase this report, or for more information, please visit instat.com or contact Matthew Woods at 617/630-2139; mwoods@instat.com. The report price is $3,495 USD.
Cahners In-Stat Group (http://www.instat.com/) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.
In-Stat is a unit of Cahners Business Information (www.cahners.com), a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.
CONTACT:
Cahners In-Stat Group
Becky Diercks, 617/558-4748
Email: rdiercks@cahners.com
Kirsten Skedd, 480/609-4534
Email: kskedd@instat.com
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