WiMAX: The Metamorphosis

In-Stat reported today that WiMAX has the potential to transmorgrify telecom as we know it. Looks like WiMAX is prepping to take over the communications space, beefing itself up to tackle DSL and cable-modems full force.

Here is the release:

WiMAX, a wireless broadband technology, has the ability to compete with DSL and cable-modem services without the need for heavy regulation, and that could have a significant impact on the telecom industry, according to In-Stat (http://www.in-stat.com). WiMAX supports point to multi-point (PMP) broadband wireless access rates up to 2+ Mbps, over a minimum coverage area of 3-5 miles. Low network investment costs, and non-line-of-sight (NLOS) operation over licensed or non-licensed radio spectrum makes WiMAX an attractive technology.

"Yet, the market success of WiMAX is far from certain," says Keith Nissen, an analyst with the high-tech market research firm. "Consumer broadband markets cannot support an unlimited number of Broadband Wireless Access (BWA) service providers. Increased broadband competition, price compression and high subscriber acquisition costs threaten to drive margins ever lower."

In-Stat has also found that:

-- By 2009, In-Stat forecasts that approximately 3% of total broadband subscribers, or 8.5 million subscribers worldwide, will be using WiMAX-based broadband wireless access services. Nearly 4.5 million of these wireless broadband subscribers will also subscribe to Voice over WiMAX (VoWiMAX) services.

-- A maximum 15% market share is likely available to BWA operators in metropolitan areas.

-- Emerging country markets typically have antiquated technology, poor quality outside plant, and limited public network capacity. WiMAX is especially well suited to these applications.