Broadband wireless will be a major threat to fixed wire telephone carriers, when the technology expands from the television sector to offer a low cost and speedy alternative to traditional telecomms networks.
According to the latest report from consultancy Ovum, 'Broadband Wireless: Market Strategies', customer demand for more bandwidth, plus the growing intensity of telcomms competition, has boosted interest in broadband wireless technology. This radio-based technology could undercut by up to two-thirds the price of using fibre networks.
Said Kate Hewett, co-author of the report: ?It enables competitors to enter their most lucrative markets and target their best customers quickly and with little outlay.?
The newer broadband wireless technology provides a two-way pipeline for multimedia services such as interactive entertainment and fast Internet access, as well as for telephony. ?Broadband wireless will position itself as a provider of entertainment and data services where there is a strong density of high spending residential and/or small to medium sized business customers, or where cable installation is not cost-effective,? according to the report.
Ovum believes broadband wireless is a serious threat to wired cable, or satellite services, especially if there is no cable infrastructure, if it is difficult or expensive to install traditional or where satellite services are unlikely to develop.
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