WiMAX: The Secret Ingredient for Successful Wireless Broadband?

From an operators’ perspective, WiMAX, the new wireless broadband standard, can ease the financial burden of deploying and expanding a network. According to technology market research firm ABI Research, these cost advantages help both the smaller wireless internet service providers (WISP) and the larger, regional and national players.

For smaller WISPs, lower cost equipment reduces the breakeven subscriber point for a new tower. For those with grander plans, the cost efficiencies brought on by the new standard will allow a company to cover more ground at less cost.

While the business model for fixed broadband wireless operators is steadily improving, specific plans on service launches remains unclear. Operators, long known for keeping their plans under wraps, are not saying a word. But recent activity point to big things, including Craig McCaw’s moves with Clearwire and Microcell.

“McCaw’s moves historically have not been small, but are typically grand plans,” observes Edward Rerisi of ABI Research. “With WiMAX equipment on the horizon, now is the time to assemble a portfolio of spectrum, the scarcest resource in this industry.”

While large moves are in the works, the small-town WISPs that are everywhere from the concrete canyons of Manhattan to the remote provinces of China also stand to benefit. A recent survey sent to nearly 400 WISPs worldwide by ABI Research points to some interesting trends.

Over half of the respondents, with an average of just 765 subscribers, intend to deploy WiMAX equipment as soon as possible in order to lower overall equipment costs, both for customer premises equipment (CPE) and for base stations.

The survey indicated that respondents are also not afraid to go after incumbents. Over half mentioned that their initial service launches are in areas served by two or more competing technologies.

These trends are observed in the market place by companies like NextWeb in California and TowerStream on the East Coast. Both are successfully competing in markets served by cable, DSL and T-1 access.

Further information on WiMAX and other broadband wireless technologies can be found in a study published by ABI Research. The study, “Broadband Wireless – Last Mile Solutions: Global Market Outlook for 802.11, WiMAX, 802.20, Satellite, and Proprietary BWA Technologies” examines equipment and subscriber trends across various last mile wireless broadband technologies.