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Juniper: DSL Subscribers to Switch to Fixed WiMax at a Rapid Clip

Posted On 07 May 2008
By : admin

ENGLAND — Up to 12-percent of global DSL broadband subscribers will switch to fixed WiMAX internet connections within five years, according to a new analysis released Tuesday by Juniper Research.The Far East is expected to lead the charge with more than one-fifth of the projected 47 million subscribers by 2013.

“WiMAX will be an attractive offer in areas where there are no wired networks and in areas where the existing DSL speed is suboptimal,” said Juniper Analyst Howard Wilcox, who authored the report Fixed WiMAX: Opportunities for “Last Mile” Broadband Access, 2008-2013. “WiMAX will solve the broadband access problem for users located at the fringes of DSL coverage. This is in fact the case in a number of developed nations such as the UK, the USA, Ireland and Scandinavia, and WiMAX network operators are deploying networks to address this market need. Additionally, in developing countries such as India, network operators are aiming to provide basic connectivity.”

The vast majority of the WiMAX 802.16e trials and network contracts which are being announced almost daily will begin by providing fixed broadband, the report notes. Mobile usage will develop as an added benefit for subscribers after initial demand for fixed and portable services has been satisfied.

The report also projects the WiMAX devices market will approach $6 billion per annum by 2013, and the top three regions for WiMAX adoption — the Far East, North America and Western Europe — together will represent more than 60-percent of the projected $20 billion annual global WiMAX service revenues within five years.

However, “brand identification and service differentiation are major marketing challenges facing new WiMAX operators,” Wilcox warned. “Many of the existing broadband providers are household names that already have widespread market presence and recognition. WiMAX operators will need to identify and promote their [services] whilst avoiding entering the market on the basis of price.”

The report provides five-year regional forecasts for WiMAX 802.16e as a “local loop” technology, providing data on subscribers, service revenues and devices as well as detailed deployment tables and case studies. Juniper drew its conclusions after interviewing senior executives across a wide range of vendors and operators, Wilcox said.

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