AWS Spectrum Auction Disappointment Will Prompt Satellite Operators' WiMAX Partnerships, According to ABI Research.

NEW YORK -- DBS operators in the United States have taken an aggressive approach to the Advanced Wireless Services (AWS) spectrum auction currently being held by the FCC. A consortium called Wireless DBS qualified as a bidder; it includes EchoStar, DirecTV, News Corp., Rupert Murdoch, and Charles Ergen as interested parties. However the DBS operators' bids, although initially among the highest submitted, were largely unsuccessful, and Wireless DBS has dropped out of the bidding. This disappointment has put a damper on plans for the satellite players to launch their own mobile service based on WiMAX and will likely pave the way for a partnership for WiMAX with an operator such as Clearwire. If that proves to be the case, it will represent a significant shot in the arm for the already vibrant WiMAX sector.

"The DBS operators are looking at how they can utilize wireless spectrum for two-way data services as well as mobile voice services," says principal analyst Michael Arden. "The development of a mobile service connected to satellite-video service would be one more piece of a service bundle that would help to reduce customer churn and to create an opportunity for convergence of services--such as broadcast and mobile video. It looked as though they were well-positioned to become big players directly. However, given their lack of bidding success, they are going to have to rely on partnerships in provisioning mobile services."

If the DBS operators choose to use WiMAX to deliver mobile services, who stands to benefit? ABI Research believes it is likely that they will opt for a partnership model with Clearwire, which would strengthen the company's position as a formidable competitor to Sprint (who is aligned with cable operators) in the WiMAX service provider business.

ABI Research's new study, Direct Broadcast Satellite Infrastructure, CPE, and Interactive Services (http://www.abiresearch.com/products/market_research/DBS), examines the market for DBS television infrastructure solutions, as well as services trends such as the inclusion of mobile services into service packages, the uptake in broadband and telephony services, and the rollout of VOD. It forms part of the company's IP Networking Research Service (http://www.abiresearch.com/products/service/ IP_Networking_Research_Service). (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in broadband and multimedia, RFID and M2M, wireless connectivity, mobile wireless, transportation and emerging technologies. For information visit www.abiresearch.com, or call +1.516.624.2500.