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  Category: Articles » Technology » Article

WiMAX Equipment market to cross $ 3.2 billion by 2010

By James Marriot

It is anybody's guess what the chances are of service providers earning profitable returns from the money invested on the communication equipments and networks of the WiMAX system? Market research firm RNCOS in its recently published report "WiMAX Market Forecast (2006-2010)", thinks that there are three ways they can achieve this end without ruining their present businesses. The first two ways advise raising money for investment and the third way suggests the cutting down of costs.

The report further claims that the WiMAX technology scores over the other traditional wireless or wire-line technologies, with its leverages in pliability, mobility and cost. Thus the WiMAX service providers easily out maneuver the traditional wireless operators in the area of market share. An international synchronization of the spectrum enough to permit manufacturers to produce equipments in a large scale, at reduced costs is the greatest trial for the industry.

An excellent opportunity to expand the already established market for fixed, portable and mobile broadband access is provided by WiMAX, which is a more innovative and financially feasible variant. Although WiMAX has immense prospects but it must clear a few hurdles before becoming the only universal broadband wireless operating system. To begin with, it has to resolve certain issues regarding the existing quality of mobility along with the accessibility of the WiMAX equipments. It also has to tackle the preliminary high cost of its products and then choose on a consistent spectrum distribution.

According to the report by RNCOS, the market for WiMAX certified equipment subscriber units and base installations evaluated to be worth $ 41Mn in 2005 is estimated to surge up to $ 3.3Bn through 2010.

The report also projects the increase in the markets of fixed/ portable broadband communication equipments evaluated presently at $560Mn to climb up to $2.1Bn through 2010. The report further provides aggressive forecasts the price of subscriber units to drop to less than $100 by 2010. The existing price of the units stands at around $500.

The biggest drawback in the implementation of the WiMAX networks is the territorial irregularities in the spectrum rules and the challenges put up by other new forthcoming (next generation) mobile technologies. The report gives an insight into the area wise distribution of the WiMAX market spread across the world. The real success of WiMAX will depend upon new and existing mobile operator's performance and economical improvements over existing 3G technologies, especially in its ability to deliver ARPU-attractive, multimedia services.

The wireless telecommunication market in the Asia/ Pacific region will witness more than 80,000 subscribers accept the WiMAX, constituting nearly 41% of the world's subscribers. By 2009 the subscriber base worldwide is estimated to rise up to 3.8Bn comprising 45% of the market share. The report also gives the profiles of the 10 leading service providers of WiMAX.

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