Multimode 802.16e Pushes WiMAX onto the 4G NGMN Front Burner

Maravedis: WiMAX is on track to compete for mainstream wireless markets released this week. Nothing points out the immediate course into mass market development than the planned introduction of multimode WiMAX mobile plus cellular semiconductors and devices.

The study exposes how the BWA market (sub-11GHz) has grown from US$562 million in 2004 to US$637 million in 2005, representing 18% of increase. The WiMAX-certified equipment will reach $140 million in 2006 representing 17% of the entire BWA industry.

The report provides important insights on spectrum availability and expected regulatory changes for 2006-2008 by region and key countries. While in most of Europe 2.5-2.69 GHz band is exclusively reserved for UMTS mobile services, the situation is evolving towards technology agnostic approach by regulators.

Highlights of the research study include:

• Service providers are examining fixed mobile convergence to reverse ARPU decline.

• Service providers care about certification, standardization and economies of scale in the medium to long term, but they want robust equipment with NLOS capabilities today.

• The cost of indoor CPE will fall to US$75 by 2008, which will in turn boost the proliferation of WiMAX.

• BRIC countries will represent one third of accumulated BWA/WiMAX subscribers by 2012.

• Lack of spectrum allocated for WiMAX China and India is of concern, and may impact WiMAX adoption if not resolved by 2008.

• The essential Intellectual Property Rights (patents) for WiMAX technology being held by different and non-dominant companies will provide WiMAX the opportunity to emerge as a lower-cost technology.

• The WiMAX equipment market is forecasted to reach an annual US$6 billion in 2012, and will have generated accumulated revenues of US$15 billion by then.

• Maravedis predicts an accumulated 87 million BWA subscribers by the end of 2012, 67 million of which will be WiMAX subscribers.

The major criticism against mass market acceptance of WiMAX has been the lack of spectrum. Multimode does more than just open up spectrum: Starting in 2008, WiMAX that combines seamlessly with cellular will open market access to hundreds of millions of existing wireless users. For operators positioned to leverage WiMAX, this is an economically viable and more immediate path to 4G than 3G-LTE for incumbent service providers who have access to mobile BWA spectrum.

WiMAX and Broadband Wireless (Sub-11GHz) Worldwide Market Analysis and Trends 2006-2012

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