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Wireless Broadband Market Update

         
By: Maravedis                                                                                                             

Wireless broadband is the transfer of high-speed data communications via a wireless connection. Wireless broadband often refers to data transmission rates of 1 Mbps or higher.

In their latest research report "WiMAX and Broadband Wireless (Sub-11GHz) Worldwide Market Analysis and Trends 2006-2012," the research company Maravedis projects that by the year 2012, there will be 87 million wireless broadband subscribers worldwide. The explained that until the mid 2000s, many of the wireless broadband solutions used costly proprietary radio transmission technology. The wireless broadband industry changed dramatically around 2005 when an industry standard wireless broadband technology became available called worldwide interoperability for microwave access (WiMax). The availability of the WiMax industry standard has resulted in the availability of wireless broadband products at much lower cost. This is 

resulting in a shift of proprietary (company unique) solutions to WiMax systems.

Figure 1.1 shows the projection of growth for the wireless broadband industry. This diagram shows that until 2006, most wireless broadband systems used a proprietary (company unique) format. This diagram also shows that the wireless broadband industry is projected to grow from 3.5 million subscribers in 2006 to more than 87 million in 2012.

Initially, the WiMax system was designed to provide fixed location service to customers using high microwave frequencies (10-66 GHz) through direct line of sight (LOS) connections. To allow companies to provide wireless broadband service more cost effectively, the WiMax system has evolved so it could operate at lower frequencies (2-11 GHz) and provide fixed service on a non-line of sight (NLOS) 

Figure 1.1., Wireless Broadband Market Growth
Source: Maravedis (www.maravedis-bwa.com)
8 Oct 2006

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basis. The WiMax system continues to evolve and WiMax products with mobile ability (full mobility) are beginning to become available.

The equipment market for wireless broadband systems is growing exponentially. The ability of companies to rapidly setup wireless broadband systems and the availability of microwave frequencies in many countries has resulted in the establishment of many new broadband service provider companies. Wireless broadband growth is especially high in key emerging countries which include Brazil, Russia, India and China (BRIC). 

To further accelerate the growth, the availability of industry standard low cost equipment and chip sets has reduced the initial costs for 

starting and operating a wireless broadband system. Maravedis projects that the cost of indoor customer premises equipment (CPE) will fall to US$75 by 2008, which will in turn boost the growth of WiMAX. 

Figure 1.2 shows the growth projection of equipment sales in the wireless broadband industry. This diagram shows that by 2006, broadband equipment sales had reached approximately $1 billion USD and that the key future markets for WiMax equipment include Brazil, Russia, India and China (BRIC). This graph shows that WiMAX equipment market is forecasted to reach an annual $6 billion in 2012 and will have generated accumulated revenues of US$15 billion by then.

Figure 1.2., Wireless Broadband Equipment Market
Maravedis, Inc. is a world-leader and pioneer in Broadband Wireless and WiMAX market research and analysis. Offering more than just numbers, we publish reports and provide consulting specific to the converging wireless industry that are developed into informed, rational opinions thanks to our in-depth expertise of wireless technologies from WiMAX to cellular mobile technologies and emerging fields of technologies. 

Maravedis
665 Guy Street Suite 6
Montreal, Quebec, H3J 2V5
Canada
General Information: (786) 347-5580
Sales: (514) 823-4096
9 Oct 2006

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