Wireless data skyrockets, broadband hits snag.
As 3G services emerge, the wireless data market will skyrocket, according to a study by the Allied Business Intelligence, Inc. (ABI Abi (ā`bī) [short for Abijah], in the Bible, King Hezekiah's mother.
(Application Binary Interface) A specification for a specific hardware platform combined with the operating system. ), Oyster Bay, N.Y. During 2000, 100 million users will gain actual direct Internet access to handsets, while hundreds of millions more will be exposed to truncated access services in the next year--the competitive wireless markets will force other operators to deploy truncated access methods. By 2005, the study estimates data users of around 240 million, up from 26 million in 2000.
Thirty-seven operators made WAP (wireless application protocol) announcements as of January. Most handset manufacturers say their WAP-based handsets will be introduced this year. Direct Internet access will be a popular business tool and a consumer application for the high-end adapter, with some exceptions. The only limitation may be the production of GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. (general packet radio service) handsets, due to be on the market at the end of 2000.
North and South America will see data usage rise after 2002, when IXRTT IXRTT Interexchange Radio Transmission Technologies (intereXchange radio transmission technologies) and EDGE strategies are due to be implemented by leading CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. and TDMA (Time Division Multiple Access) A satellite and cellular phone technology that interleaves multiple digital signals onto a single high-speed channel. For cellular, TDMA triples the capacity of the original analog method (FDMA). carriers. The Western Hemisphere will account for nearly 40% of the data market by 2005. Western Europe will have one-tenth of the market in 2000--and close to one-third in 2004--due to the GSM (global system for mobile communications (communications) Global System for Mobile Communications - (GSM, originally "Groupe de travail Sp?ciale pour les services Mobiles") One of the major standards for digital cellular communications, in use in over 60 countries and serving over one billion subscribers. ) offering in the area, the movement of GPRS as an evolutionary step before 3G, and the high usage of wireless phones. The Asia-Pacific region will account for more than one-third of data users in 2000, and one-fourth by 2004.
"With GPRS going up in much of Western Europe and truncated access services--such as those based on WAP--gaining considerable momentum worldwide, there is a data market finally at hand which will prove valuable to users and profitable to suppliers," says Larry Swasey, ABI vice president of communications research who authored the study. "As 3G radio channel element upgrades take place and data strategies are placed into mobile wireless networks, the handset will become a much more valuable tool to both the operator and the user."
Meanwhile, problematic rollouts delayed the arrival of broad-band technologies--which raises the value of the wireless broadband market, according to a separate ABI study. The hurdles faced by many service providers, consultants, and their customers include line congestion The condition of a network when there is not enough bandwidth to support the current traffic load.
congestion - When the offered load of a data communication path exceeds the capacity. and slow deployment of DSL and cable modems, the study says.
As a result, service providers are turning to wireless technologies, such as LMDS (Local Multipoint Distribution Service) A digital wireless transmission system that works in the 28 GHz range in the U.S. and 24-40 GHz overseas. It requires line of sight between transmitter and receiving antenna, which can be from one to four miles apart , MMDS (Multichannel Multipoint Distribution Service or Microwave Multipoint Distribution Service) A digital wireless transmission system that works in the 2.2-2.4 GHz range. , and PCS systems operating in the various ISM bands (900 MHz, 2.4, 5.1 and 5.8 GHz), which are expected to gain more than nine million subscribers by 2005. MMDS, including the 3.4-3.7 GHz worldwide standard for fixed wireless access, will lead the market with a 70% share in 2005, largely in residential and SOHO sectors.
LMDS will continue to make inroads inroads
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inroads npl to make inroads into [+ into the market for high-value customers, accounting for 60% of subscriber revenues in 2005. Traditional wire line and wireless carriers will join small ISPs in using a collection of bands (largely unlicensed) and technologies to address dark spots in their coverage areas.
The 5.8 GHz band is receiving the most attention as unlicensed broadband local loop. Systems operating in this band will account for close to half a million subscribers in 2005. Total shipments of customer premise equipment for high-speed wireless technologies are expected to reach 3.6 million units in 2005.
RELATED ARTICLE: Broadband Fixed Wireless Local Loop Technologies Subscribers, World Market, 2000-2005
YEAR SUBSCRIBERS (Millions) 2000 0.2 2001 0.9 2002 2.0 2003 3.9 2004 6.2 2005 9.4 CAAG 113%
Source: Allied Business Intelligence, Inc.