Infonetics: Operator survey shows market reality of WiMAX services; VoIP a key component

[Alan J Weissberger]

We are hearing more and moe market research firms report that the naysayers are wrong! That there is a real and growing market for fixed and nomadic WiMAX (true mobile WiMAX has yet to show us its true colors). Here are the latest findings from Infonetics Research:

"Although WiMAX service strategies differ from operator to operator and from market to market, most operators are focused on the less capital-intensive fixed and nomadic WiMAX broadband services now to address underserved markets seeking ‘wireless DSL,’ and many have formalized plans to migrate to full mobility WiMAX over the next couple of years. VoIP, CPE and device subsidization, and an emphasis on pre-paid and ad-hoc pricing are also integral service components for many operators we interviewed,” said Richard Webb, Infonetics Research’s Directing Analyst for WiMAX, Microwave, and Mobile Devices.

WiMAX SERVICE PROVIDER SURVEY HIGHLIGHTS

59% of respondents plan to offer VoIP over WiMAX services by 2011, indicating the strong potential of voice over WiMAX as an additional high-value revenue stream for operators. An increasing number of GSM operators are entering the WiMAX market, seeking to leverage their trusted consumer brand by offering basic broadband services, and WiMAX offers the more cost-effective delivery option
To move to full mobility WiMAX services, operators must continue to deploy network infrastructure to ensure coverage to support mobility and roaming, and wait for the mobile device ecosystem to become more diverse and affordable for consumers.


While the WiMAX market is predominantly driven by developing countries, activity is increasing in developed markets as well, including Clearwire's continuing deployment and availability of services, UQ in Japan, and WorldMAX in the Netherlands. Of the operators surveyed, 41% are from Asia Pacific, 36% from Europe, the Middle East, and Africa (EMEA), 18% from North America, and 5% from Central and Latin America (CALA).

In 1Q09, Alvarion consolidated its overall WiMAX equipment revenue share lead by migrating existing customers to 802.16e networks and winning new business. Alvarion, Alcatel-Lucent, Motorola, Huawei, Cisco, and Samsung represent the major forces in the worldwide WiMAX market, according to this report.

For more info:
http://www.infonetics.com/pr/2009/crs-service-provider-survey-WiMAX-strategy.asp

And here's another market research report that focuses more on the semiconductor companies (X-Intel):
http://www.solid-state.com/display_news/179688/5/HOME/Analysis:_The_US'_emerging_4G_wireless_landscape

[Alan J Weissberger]

Jose, I have been saying the same thing as Infonetics for a very long time. It is this quote from their press release that is most relevant to your comment above:

"To move to full mobility WiMAX services, operators must continue to deploy network infrastructure to ensure coverage to support mobility and roaming, and wait for the mobile device ecosystem to become more diverse and affordable for consumers."

That is anything but certain at this point.

IMHO, the biggest mobile WiMAX news in the U.S. this year was Comcasts agressive plans as a CLEAR MVNO. The biggest mobile WiMAX news outside the U.S. will hopefully come later this month (or next) when UQ goes live in Japan and the M-Taiwan WiMAX program gets in gear (we will learn more about this on July 13th at the ComSoc SCV Meeting presented by the Head of Taiwan's WiMAX Program Office (details on our web site).

Regarding your remark about "10MHz WiMAX configurations for deployments," I thought they all were 10MHz channels vs the 8.75 MHz channel size and the 2.3 GHz band used for WiBro in South Korea. Please enlighten us what you meant?

[Jose Puthenkulam]

At last an analyst gets the Mobile WiMAX strategy! I've been trying to convey this message for so long that, initially Mobile WiMAX infrastructure gets deployed for Fixed and Mobile Internet access. Then with Fixed and Mobile VoIP and Mobile IPTV services can be enabled. This enables a single infrastructure deployed, but overtime the value of the network keeps increasing and allowing high monetization of added services. Also this is by 10MHz WiMAX configurations for deployments are key. It allows future proofing the deployments.