Recession hits mobile WiMax broadband rollouts

It is make or break time for WiMax, according to analysts

The rollout of commercial mobile WiMax networks is continuing, but at a slower rate than previously predicted, according to new figures from Juniper Research.

Funding issues created by the economic downturn, and spectrum auction postponements in several countries, have significantly slowed the implementation of WiMax networks, and consequently the number of subscribers.

However, Juniper's WiMax Broadband: Markets, Opportunities & Forecasts, 2009-2014 report suggests that the improved experience WiMax can offer to those on slow DSL or cable modem services, or nearing the limit of DSL coverage, will help drive WiMax 802.16e global revenues to over $15bn (£9.7bn) by 2014.

"We are on the cusp of make or break time for WiMax," said Howard Wilcox, the report's author. "While market leaders such as Clearwire are launching services and expanding internationally, there are also well publicised challenges for WiMax, such as those highlighted by French regulator ARCEP."

Sales of WiMax in developing nations, such as those in Africa and the Middle East, South America, the Indian Sub Continent and Eastern Europe, will be worth around $4bn (£2.5bn) by 2014, according to the report.

Although mobile WiMax has a major role to play in developing countries where there is no wired network, developed regions such as North America, Western Europe, China and the Far East together will account for 70 per cent of market by 2014.

WiMax has a head start, but there are several major trials for the rival Long Term Evolution platform now underway and that lead is rapidly shrinking, making avoiding any further deployment delays even more crucial.