In-Stat: WiMAX Set for Growth, But Still Faces Challenges

So much news has been generated lately about WiFi that sometimes it seems as if the world has forgotten that technology’s younger, more powerful sibling, WiMAX.

But, market research firm In-Stat hasn’t forgotten. In a recent report, the firm predicted some significant growth in worldwide subscribers to WiMAX-based broadband.

In-Stat said it expects 2006 to yield 222,000 WiMAX subscribers, and that number should grow to 19.7 million by the end of 2010. The firm noted that most WiMAX subscribers today are in the Asia/Pacific region.

I find it interesting that, even looking ahead to 2010, WiMAX subscribers are measured in the millions rather than the billions. The technology does need to overcome some notable challenges before it becomes more widely adopted.

“The biggest challenge still comes from competing technologies and services,” In-Stat analyst Daryl Schoolar said in the report. “WiMAX will have difficulty competing in areas that already have established broadband services.”

I have read that one of the most promising markets for WiMAX is rural areas, and in the report Schooler conveys that idea.

“Much of WiMAX's early success will come from under-developed regions of the globe,” he says.

When it does get deployed, it appears likely providers other than those specializing in 3G will be the ones to jump in and get their feet wet. In-Stat predicts that, with the exception of Sprint, most 3G carriers won’t be deploying WiMAX anytime soon.

What do you think lies ahead for WiMAX in the future? Watch this space for more discussion of the topic soon.