The BWA/WiMAX Equipment Market in Brazil Should be Worth US$300 Million by 2010.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c35216) has announced the addition of BWA/WiMAX Brazilian Market Analysis to their offering.

There will be 768,000 accumulated BWA/WIMAX subscribers in Brazil by 2010, of which two thirds will be WiMAX, according to the latest report, titled "BWA/WiMAX Brazilian Market Analysis." This new report, the first of a series that will include reports on Russia, India and other countries, provides an in-depth review of the broadband wireless and WiMAX markets and regulatory activity taking place in Brazil.

"Approximately 70% of those accumulated WiMAX subscribers will be residential mobile users, while fixed WiMAX will continue to be driven by large and SME customers," explained Eduardo Prado and Adlane Fellah, co-authors of the report.

The Brazilian players are anxiously awaiting the new 3.5 GHz auction to start sometime in July 2006, before federal elections due in October 2006. Bidders will want either to expand their current coverage areas or to enter the WiMAX arena. Moreover, positive regulatory changes in the 2.5 GHz band will open the WiMAX market starting 2007.

We predict that the most active players will be companies with deep pockets such as Telemar, Brazil Telecom, Embratel and Telefonica, who are thoroughly testing the technology and crafting their business plans.

"Overall, the total accumulated equipment market size for BWA/WiMAX in Brazil will represent a lucrative US$300 million by 2010, which makes Brazil a key market for BWA/WiMAX vendors for the years to come," Fellah added.

This research also reveals that Brazil remains a very price sensitive market. Demand for broadband services is exploding, but both service providers and residential end-users demand very low cost CPE (in the $100 range) before they will fully adopt WiMAX. So far, the demand for broadband wireless services has been mainly driven by high-end corporate and government users.

"Other important obstacles for massive WiMAX adoption include a rather restrictive regulation around mobility for WiMAX and the fact important market players we interviewed said that they prefer to await the mobile WiMAX version to become widely available before they commit to large network deployments," Prado commented.

The research was conducted through two main channels:

Secondary Sources

We always endeavor to provide our clients with a new and unique perspective of the industry based on our own research. To ensure that we add value to the information already available to stakeholders in the industry, we reviewed most of the market research available on broadband wireless access in Brazil, including:

--ITU Statistical Yearbook 2004

--The World Bank Development Indicators 2005

--Numerous articles

Primary Sources

Primary research is a lengthy but indispensable process for market research because it yields data neither biased nor distorted by intermediaries. As part of this research, we conducted interviews with the following:

--Interviews with all service providers listed in the report

--Interviews with ANATEL 

--Interviews with country managers of equipment vendors active in the Brazilian market

The survey took place from January to March 2006 and involved discussions with product managers, marketing managers, regulators, technologists and sales people at all organizational levels.

Topics Covered

Executive Summary

Upcoming Licenses for 3G

Methodology & Assumptions

1. Current State of the Brazilian Market

2. Regulatory Overview

3. License Holders Profiles

4. Wireline and Long Distance Operators

5. Mobile Operators

6. Other Wireless Service Providers

7. Government

8. Main Vendor Initiatives

9. Issues / Risks / Challenges

10. International Perspective: Case Study for Unwired Australia

11. Brazil BWA/WiMAX Market Forecasts (2005-2010)

12. WiMAX Contacts in Brazil

LIST OF EXHIBITS

Summary

In 2005, the BWA equipment market opportunity was a mere US$6 million, dominated by deployments of unlicensed 5.8 GHz equipment by WISPs and corporate users. However, we believe that with the upcoming auction, the certification of new equipment, and lower-cost equipment, the annual 3.5 GHz equipment opportunity will increase from US$1 million in 2005 to US$33 million in 2010. The 2.5 GHz market opportunity will also become substantial, with shipments projected at US$31 million by 2010. Overall, the total accumulated equipment market for BWA/WiMAX in Brazil should reach US$300 million by 2010, which makes Brazil a key market for BWA/WiMAX vendors for years to come.

With regard to BWA/WiMAX, we project an accumulated 768,000 subscribers by 2010 among residential and business users. WiMAX subscribers should represent two-thirds of this figure. Approximately 70% of the WiMAX subscribers will be mobile customers who are predominately residential, while fixed WiMAX will continue to be driven by large corporations followed by SME customers.

Companies Mentioned Include:

- Embratel - Vant (Brasil Telecom) - DirectNet (Neovia) - WKVE - Grupo Editorial Sinos - Universal Telecom (UT) - Inforwave - Vant - Neotec - TVA - Brasil Telecom (BrT) - Telefonica - TELEMAR/Oi - Vivo - TIM Brasil - Claro - Oi - TELEMIG Celular and Amazonia Celular - BrT GSM - Neovia - Airspan - Alvarion - Aperto Networks - Intel - Motorola - Redline Communications - Samsung - Siemens

For more information visit http://www.researchandmarkets.com/reports/c35216