Certification delaying greater WiMAX network deployment: Maravedis

A delay in certifying mobile WiMAX equipment (802.16e), combined with high customer premise equipment (CPE) costs and the lack of a broad number of devices, are hampering greater WiMAX network deployments, according to a new report from Maravedis Inc. In the latest installment of its WiMAXCounts Quarterly Report, the research firm notes that the WiMAX and broadband wireless access (BWA) subscriber base increased by 350,000 in the fourth quarter to top more than 1.7 million subscribers worldwide. But solid growth of about 20% per quarter in 2007 won't be enough to stimulate greater network deployment in 2008. "We expect the introduction of major network deployments for mobile WiMAX, combined with lower subscriber unit pricing, will accelerate subscriber growth into 2009," reads the report. It predicts that WiMAX will have a tough time gaining traction against entrenched hard-wired technologies - at least for the time being. "Until 802.16e WiMAX equipment certification occurs and the mobility feature gets market-wide acceptance, WiMAX will be competing with traditional technologies such as cable and DSL. This delay is putting downward pressure on WIMAX ARPU (average revenue per user) as WiMAX struggles to compete against these more proven technologies," reads the report. Maravedis notes that WIMAX ARPU is below that of DSL. While WiMAX appears to be having a hard time breaking the legacy of cable and DSL access technologies, the report indicates that rural and remote areas represent significant opportunity for the nascent broadband technology. "WiMAX does have an advantage over these technologies where there is a digital divide - in remote areas that do not have DSL or cable," Maravedis writes. Despite the ongoing struggles for broadband wireless technology and a lack of certification process for the mobile flavour, operators in many parts of the world, including Canada, are moving forward with mobile WiMAX. The report highlights Primus Telecommunications Canada Inc., which is current testing 802.16e gear. It launched a trial in Hamilton last May using equipment from Alcatel-Lucent and then deployed a small trial network on Motorola Inc. gear in Toronto later in the fall.

Certification delaying greater WiMAX network deployment: Maravedis

News | March 27, 2008

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