Bandwidth Demand Dictates Dynamic LMDS Market Growth
SAN ANTONIO--(BUSINESS WIRE)--Nov. 23, 1999--Want faster connectivity? Local
multipoint distribution systems (LMDS) services providers are quenching customers' needs for
speed.
Consequently, LMDS is emerging as the most sought-after broadband wireless technology.
According to Frost & Sullivan's (www.frost.com) strategic research, ``World LMDS Equipment
and Service,' revenues for 1999 are projected to reach $1.75 billion and exhibit an outstanding compound annual growth rate thereafter.
Driven by high bandwidth demand, this burgeoning industry will witness outstanding revenue growth throughout the forecast period
(1999-2005).
The explosion in data communications, the deregulation of the local phone market and the technological advantages and cost-effectiveness of
LMDS will foster impressive growth opportunities for this technology. Nevertheless, LMDS remains commercially unproven. LMDS
network providers and hardware vendors will have to achieve seamless functionality to support rapid and widespread commercial rollouts.
Because LMDS is a new technology with no commercial record, investors may be reluctant to commit capital. ``Project financing is among
the most important issues affecting the growth of the industry,' states a Frost & Sullivan telecommunications analyst.
Furthermore, the LMDS carrier pool is dominated by new entities with little telecom experience. Investors might be hesitant to support these
players, especially given the inevitable competition with large, well-funded incumbents.
New entrants seeking financial backing should emphasize the increased demand for high-speed, high-bandwidth technologies triggered by
the exponential growth of the Internet and telecom data traffic.
``The LMDS equipment market is expected to remain intensely competitive,' observes Frost & Sullivan telecommunications analyst. Still,
industry trends indicate that there is space for existing vendors and new entrants. Early success in this embryonic field will greatly depend on
the ability of companies to bring a product to market in a timely manner.
Technological proficiency will play a key role in determining market winners, as will marketing support, business planning support, and
network deployment.
``World LMDS Equipment and Service' analyzes industry challenges, drivers, restraints, technological trends, and supplies competitive
profiles of competing companies, as well as numerous strategic recommendations.
Frost & Sullivan presents 1999 Market Engineering Awards to the world LMDS equipment and service industry. The Vendor Excellence
Award is presented to Newbridge Networks, and the Market Pioneer Award is given to WinStar Communications.
Frost & Sullivan is an international marketing consulting and training company that monitors the telecommunications industry for market
trends, market measurements and strategies. This ongoing research is used to complement a series of research publications such as No.
5653-65 World GSM Digital Cellular Infrastructure Markets and is used to support participants with customized consulting needs. Free
executive summaries are available to the press.
World LMDS Equipment and Service Markets
Report: 5651-65 Publication Date: June 1999 Price: $3,450
Contact:
Frost & Sullivan, San Antonio
Jennifer Minx, 210/348-1015
jminx@frost.com
frost.com |
