Cellular Systems Will Upstage WiMAX In Developing Countries, Says Analysys.HONG KONG Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. -- Cellular voice services will capture the limited disposable income disposable income Portion of an individual's income over which the recipient has complete discretion. To assess disposable income, it is necessary to determine total income, including not only wages and salaries, interest and dividend payments, and business profits, but also in developing markets, undermining the business case for WiMAX, according to a new report, The Business Case for WiMAX, published by Analysys, the global advisers on telecoms, IT and media (http://research.analysys.com) Many people have identified developing markets as the prime opportunity for WiMAX, given the absence of competing fixed infrastructure. However, according to report co-author, Mark Heath, "The prospects for WiMAX in developing markets will be severely limited by a lack of PCs, low disposable incomes and the growing strength of cellular services. Cellular voice services will be much more appealing to most people, particularly as handsets are available very cheaply." Key findings from the new report include: - Limited disposable income in developing markets places major constraints on the revenue that will be spent on telecommunications in general. For example, GDP GDP (guanosine diphosphate): see guanine. per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. in the USA is between 7 and 25 times greater than countries such as Poland, Algeria, China, India and Pakistan - The lack of PCs will limit demand for Internet access in developing markets. PC penetration in the USA is over 75%, compared with 6% in Bulgaria, 5% in Panama and less than 2% in India and Kenya. Cellular voice services are much more likely to be popular - Operators will have to set service prices at low levels and bear the substantial cost of WiMAX CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment themselves, to help achieve growth. The cost of WiMAX CPE will remain high, as WiMAX will be unable to achieve the same economies of scale as cellular systems Cellular penetration is already growing rapidly in developing markets, and taking a significant share of the limited disposable income. According to co-author, Alastair Brydon, "Mobile penetration in Pakistan rose from 9% in July 2005 to 24% in July 2006, fuelled by falling prices of handsets and services. This will provide a platform for mobile operators to develop a range of non-voice services, which will further suppress the need for WiMAX." The report is available to purchase online at http://research.analysys.com/store, priced at GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1700 (approximately EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2450) plus VAT. Media requests for an executive summary should be directed to press@analysys.com or call +44 (0)1223 460 600. |
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