WiMax: Market Potential and Growth Drivers

WiMAX, a standard-based broadband wireless technology, provides fixed and mobile users with up to 10+ Mbps of wireless broadband data, including applications like video and VoIP. WiMAX is still in its early stages of deployment on a worldwide scale but market studies suggest strong subscriber growth over the next 4-5 years. The majority of WiMAX deployments and trials have been in markets outside of North America.

WiMAX development has primarily been driven by the desire to create an alternative to DSL services for developed markets. However by re-purposing WiMAX components, this technology may deliver the first low cost mobile wireless VoIP and mobile broadband service targeting high growth markets in emerging countries. Increasing demand for mobile devices is fuelling the growth of WiMAX market. With superior throughput and spectral efficiency, WiMAX provides significant cost savings for operators/carriers, who have to install fewer base stations.

This report analyzes the worldwide WiMAX market. It analyzes the subscriber base growth, market drivers, and competing technologies. The report also profiles the major WiMAX providers, with a discussion of their business strategies and significant developments.

• There were close to 350 million broadband subscribers worldwide at the end of 2007, up from 130 million at the end of 2004.
• Worldwide WiMAX subscribers are estimated to have reached 222,000 in 2006 and are forecasted to grow to 19.7 million by the end of 2010.
• Increasing deployments drove the number of global WiMAX subscribers up by almost 44% to reach approximately 1.37 million at the end of Q307 as compared to 0.95 million in Q107.
• The Asia Pacific region in 2007 accounted for a third of all fixed WiMAX equipment revenue, another third comes from Europe, the Middle East and Africa, and just 18% of the market can be attributed to North America.
• North America is by far the leading region in terms of the number of WiMAX licences, with a total of 394 WiMAX license holders.
• Worldwide telecom spending for wireless infrastructure is expected to be focused on WiMAX, recording a CAGR of 30.7% from 2006-2011.