WiMAX - the Catalyst for Broadband Wireless Access in Asia-Pac

Frost: Worldwide interoperability for microwave access (WiMAX) has invigorated broadband wireless access (BWA) as a viable solution to address the increasing digital connectivity needs in the Asia Pacific region. At the same time, disparate economic, geographical and regulatory conditions across the region has led to the contrasting pace and development of WiMAX in these diverse markets.

Revenue in the WiMAX services market - covering 12 major Asia Pacific economies - is forecasted to total USD165.3 million by end-2006, and could reach USD5.4 billion in 2010.

An evolution of BWA, WiMAX is a technology that is poised to cause a major upheaval in the telecommunications industry. The added mobility and farther range it offers over its predecessor Wi-Fi (wireless fidelity), and greater bandwidth over 3G (third generation) networks further strengthens its appeal as the next evolutionary data-voice enabler.

The increased activities surrounding BWA spectrum allocation in Asia Pacific in 2005 and 2006 has brought about the resurgence of WiMAX. The low broadband subscriber penetration and tele-density in the region are major thrusts for the deployment of WiMAX. In comparison to Europe and North America, the Asia Pacific region is expected to be a more suitable test bed for WiMAX, given the lack of telecommunications infrastructure, low broadband penetration, and geographically dispersed population.

Certain countries in Asia Pacific however still face challenges in WiMAX deployment, partly due to the uncertain regulatory conditions and the strong commitment to 3G investments. In addition, most incumbent service providers in the region are adopting a cautious approach to avoid duplication of broadband access infrastructure, while anticipating the availability and maturity of WiMAX products.

Although major hurdles in introducing WiMAX Forum Certified products-to-market have been overcome, certain product release milestones need to be achieved. With the large resource commitment in 3G networks and the head start it enjoys, service providers are likely to be hesitant in allocating more resources into a new network until they see some financial returns from the existing ones.

In order for telecommunication companies to capitalize on the growth potential of WiMAX, it is important to understand how the development and use of WiMAX is affected by the economic disparity, market saturation, and geographical and regulatory conditions of each individual Asia Pacific country. A detailed analysis of these factors, along with the appropriate solutions is likely to heighten the booming growth and revenue potential for WiMAX in the region.

WiMAX Growth Opportunities in Asia Pacific

Publ 20060530