Commercial Opportunity for WiMAX Driven by End User's Demand for Cost and Performance, Says Yankee Group.

BOSTON -- WiMAX will help make broadband wireless the third access technology complementing DSL and cable modem solutions

WiMAX products will increasingly compete with existing landline broadband technologies and, as they mature, even mobile broadband technologies, according to the Yankee Group report, WiMAX Takes Center Stage in the Push to Fuse the Fixed and Mobile Broadband Worlds. DSL and cable penetration will continue to grow while WiMAX products push for certification, although an underserved market of 15% to 20% could exist without alternative solutions.

"One of the primary goals of WiMAX is to eventually eliminate the cost of broadband wireless customer premises equipment (CPE)," says Lindsay Schroth, Broadband Access Technologies senior analyst. 'With CPE prices in the range of $250 to $600, service providers struggle to compete in markets with high availability of cable and DSL."

"Providers have found a sweet spot for broadband wireless access in the rural markets and as a T1 replacement service where the revenue justifies equipment costs," Schroth continued. "However, to increase mass-market appeal, costs need to come down. We don't expect to see significant price decline until 2006. Yet the largest impact on WiMAX market acceptance will be when silicon is embedded in portable devices, such as laptops, removing any upfront investment in CPE. This will likely happen in 2007 when 802.16e silicon is produced."

Broadband wireless access system vendors supporting WiMAX include Alvarion, Aperto Networks, Navini Networks, Proxim, NextNet Wireless and a host of others. Service provider examples include NextWeb, airBand Communications, Clearwire, AIR2LAN and TowerStream (U.S.), IntroWeb (the Netherlands and Holland), Irish Broadband (Ireland), Leap Broadband (Ireland), British Telecom (UK), TelstraClear (New Zealand), Unwired Australia (Australia), China Telecom Corporation and China Netcom (China) and others.

THE YANKEE GROUP (http://www.yankeegroup.com)

The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks and competitive pressures of developing, deploying and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America and Europe.