Success of WiMAX in Underserved Markets Dependant on Efficient Spectrum Allocation.

PALO ALTO, Calif. -- Worldwide interoperability for microwave access (WiMAX) solutions are expected to usher in a new set of technologies that provide cost-effective wireless last-mile broadband access to underserved and unserved regions.

For long-term success, WiMAX providers need to focus on flexibility in responding to demand, and, more importantly, on forging international and multilateral agreements for spectrum allocation.

New analysis from Frost & Sullivan (www.frost.com), Competitive Assessment of Internet Connection Solutions for WiMAX Services in Underserved Markets, reveals that the growing technology will bring a new product offering to the market place addressing Internet connectivity solution.

"Spectrum is a scarce resource that must be shared and licensed for quality of operation and non-interference," says Frost & Sullivan Industry Analyst Benoit Denis.

While entry into an unlicensed spectrum is free of cost, co-channel or adjacent channel interferences among distinct systems is a major concern for wireless systems operating in license-free bands.

"Licensed wireless frequencies are more reliable, since the entire length of that particular data path is clear of spectral interference from other wireless technology devices," says Denis.

Consequently, the future of WiMAX lies in the licensed frequency bands, although early adoption and customer base acquisition are expected to be major incentives for using unlicensed frequencies.

Many large carriers already own spectrum bands in their target markets. Integrating a WiMAX solution in their existing infrastructure would ensure quality of service (QoS) and generate returns on past spectrum investments.

Local carriers are likely to opt for an unlicensed network in early development stages compelled by financial constraints.

Despite the intervention of the International Telecommunication Union (ITU) for regulating frequency allocations, lack of control over the assignment of frequency to specific equipment is a significant problem for global telecommunication system providers.

The WiMAX forum advocates that global harmonization or the uniform worldwide allocation of spectrum is crucial to lowering equipment costs.

"To minimize costs and maximize radio performance, radios must be optimized for each of the major spectrum bands identified as suitable for WiMAX deployments," explains Denis.

This is likely to decrease the delays in WiMAX infrastructure deployments and the risk perception associated with these investments.

Although the WiMAX forum is leading the way in creating a consensus among industry participants regarding uniform spectral allocation, support of the ITU is essential for formalizing such negotiations.

If you are interested in an overview to this new research service, please e-mail Dustin McVey ([e-mail]) with the following information:

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Competitive Assessment of Internet Connection Solutions for WiMAX Services in Underserved Markets, part of the Space and Communications subscription, evaluates the potential market for WiMAX Internet connectivity services in underserved areas and draw a competitive assessment of trunking services over of fiber optics, satellite, and broadband wireless technologies. The study also investigates the key drivers and challenges that influence the uptake of WiMAX in these markets. Executive summaries and interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. Its advisory expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities for clients. While serving clientele ranging from virtually every Global 1000 to emerging companies, Frost & Sullivan's comprehensive industry coverage includes a global perspective of all vertical and horizontal industries. Its unique coverage combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com

Competitive Assessment of Internet Connection Solutions for WiMAX Services in Underserved Markets

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