LMDS in Asia-Pacific: A Useful Lesson for Growth-Hungry Broadband Players
BOSTON--(BUSINESS WIRE)--June 18, 2001--Although local multipoint distribution systems (LMDS) have been viewed as a promising alternative to fiber connections, the uptake of broadband services based on LMDS technology does not live up to expectations, according to the Yankee Group's upcoming Report, "LMDS in Asia-Pacific." The Yankee Group projects that 4% of broadband subscribers in the region will be connected via LMDS, as opposed to 47% by cable modem and 42% by ADSL, by 2003.
"The growing affordability of fiber as well as increased competition from alternative broadband services such as cable modem and ADSL services account for LMDS's slow start in the region," says Yankee Group senior analyst Agatha Poon, the Report's co-author.
Taking Hong Kong as an example, the five new wireless fixed telecommunications network services (WFTNS) licensees have been bullish about the prospects of LMDS development and have committed to invest in infrastructure required to provide the "last-mile" wireless access solution. However, less than two years after entering the market, CCT, one of Hong Kong's five licensed fixed wireless network service (FWNS) providers, has sold off its broadband business.
The Yankee Group believes that the increasing affordability of fiber and growing demand for bandwidth will diminish the market appeal of wireless broadband services in the more advanced major city centers. As the LMDS market continues to evolve, a gradual shift of market needs from inner cities to outlying areas is expected.
The Report provides a snapshot of our recent Broadband Usage Survey of over 100 Asian multinational corporations in four economies, including Australia, China, India, and Indonesia. Key findings from the survey and Report include:
--High data rate and security are the two most important attributes respondents cited in broadband access choice.
--Close to 30% of survey respondents claimed that network costs were less of a concern to constrain their bandwidth usage. |
