qdog: Something interesting:
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wireless local loop infrastructure to reach $100 billion by 2006
August 13, 1997
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OYSTER BAY, N.Y., Aug. 12 /PRNewswire/ via Individual Inc. -- Seven percent of world subscriber lines will be accessed through wireless local loop (WLL) technologies by 2002 according to a report about to be published by Allied Business Intelligence, Inc. The report, "Wireless Access Solutions to Local Loop Telephony: Emerging Markets & Competitive Analysis," offers also an aggressive scenario in which 10% of the world's subscribers are using wireless as their primary access to local telephony by 2006.
The worldwide backlog for phone lines is so great, predominantly in developing countries, that operators cannot install traditional wireline at rates fast enough to fulfill demand in the near future. By using wireless access technologies, telephone infrastructure can be deployed rapidly allowing service providers to begin realizing revenues much faster.
In deregulated economies of developed nations, licensees of PCS bands can use their wireless local loop to infiltrate local phone markets as wireless line quality quickly moves to catch and surpass wireline with respect to voice and data capabilities.
The fast rate of installation, decreasing costs over time, and improved voice quality and data speeds will make wireless the prime choice for local loops in the future. ABI forecasts predict 197 million subscribers under their moderate scenario while the aggressive case sees the total number of subscribers reaching 266 million by 2006.
Developing nations will have 84% of the world's WLL subscribers by 2006. Asia and Latin America will be the two largest potential regional markets. ABI predicts that between $86 to $119 billion will be spent on WLL infrastructure by 2006.
Although there are a host of standards available for use in wireless local loop today dominated by analog cellular technologies, eventually systems using CDMA and TDMA will overwhelm the market due to their ability to use spectrum efficiently. By 2006, CDMA technology will be used in 33% of the world's wireless local loops. TDMA will be most widespread in WLL with 38% of the market by 2006.
Mobility will be an important option for operators looking to use WLL for their local access networks. ABJ estimates that 60% of the world's wireless local loops will be fixed/mobile capable by 2006. Companies offering WLL solutions without the option of mobility are limiting themselves access to the full size of the potential market.
By 2006, 68% of WLL subscribers will be located in urban areas. In order to meet the needs of high density populations, systems that use available spectrum most efficiently are necessary. Companies such as Motorola, Nortel, Tadiran, InterDigital, and Qualcomm are poised to attack the WLL urban market. Smaller companies such as SRTelecom, Phoenix Wireless, and Diva Communications are taking aim to provide telephony solutions for rural regions in developing countries. Aydin Telecom and Tellabs are currently developing systems in hopes of taking advantage of the enormous potential of WLL.
ABI's first annual study, Wireless Access Solutions to Local Loop Telephony: Emerging Markets and Competitive Analysis, can be pre-ordered from Allied Business Intelligence by calling 516-624-3113. Further information on this annual report can be obtained through Allied Business Intelligence's web site at www.alliedworld.com or by fax at 516-624-3115.
SOURCE Allied Business Intelligence, Inc.
/CONTACT: Allied Business Intelligence, 516-624-3113, fax, 516-624-3115, or www.alliedworld.com/
[Copyright 1997, PR Newswire] |