WiMax set to transform global telecoms

The ability of WiMax wireless broadband to compete with DSL and cable modem services without the need for heavy regulation will have a significant impact on the telecoms industry, analysts have predicted.

According to In-Stat, low network investment costs, and non-line-of-sight operation over licensed or non-licensed radio spectrum makes WiMax an attractive technology.

However, the analyst group warned that the success of WiMax, which supports point to multi-point broadband wireless access rates up to 2Mbps over a coverage area of three to five miles, remains uncertain.

Keith Nissen, an analyst with In-Stat, said: "Consumer broadband markets cannot support an unlimited number of broadband wireless access service providers.

"Increased broadband competition, price compression and high subscriber acquisition costs threaten to drive margins ever lower."

In-Stat's report stated that, by 2009, approximately three per cent of total broadband subscribers, or 8.5 million worldwide, will be using WiMax-based broadband wireless access services. Nearly 4.5 million of these will also subscribe to Voice over WiMax services, according to the study.

The analyst firm predicted that a maximum 15 per cent market share is likely available to broadband wireless access operators in metropolitan areas.

It also noted that emerging country markets typically have antiquated technology and limited public network capacity, making WiMax particularly attractive.