A new report this week from Pyramid Research indicates WiMAX will revolutionize the fixed wireless broadband market as the industry has expected, but the standard primarily will be a solution for fixed carriers.
In the report, “Positioning WiMAX: How WiMAX Stands Up To DSL, Cable, Wi-Fi and 3G,” a survey conducted by Pyramid shows industry players expect WiMAX to be deployed largely by fixed operators and ISPs to provide backhaul and high-speed internet access. Respondents also expressed optimism about WiMAX’s potential as a mobile solution.
WiMAX and cellular convergence will have to wait until the next generation of WiMAX, 802.16e, comes to market in 2007, according to Pyramid. Fixed carriers with 802.16d networks will be the first to rollout 802.16e. Report author Ozgur Aytar expects this adoption pattern “to provide fixed providers with the capability to offer mobility services and compete for mobile data market share.”
Pyramid forecasts total WiMAX subscribers to reach 10.9 million by 2009 with the majority on 802.16d networks, but 802.16e subscribers will exhibit a 64 percent CAGR from 2009-2012.
Early WiMAX subscribers will churn from existing fixed wireless broadband networks, Pyramid says. The firm says to expect faster growth if the costs associated with network deployment and subscriber adoption drop even faster than anticipated. In addition, operators in developing countries and rural markets in particular will be able to use WiMAX for backhaul and broadband access, according to Pyramid.
“With the next-generation of WiMAX, the technology will live up to the hype but time is working against WiMAX as competing technologies like HSDPA emerge,” says Aytar. “Vendors need to bring their solutions to market on-time and up to specifications.”
