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Despite Challenges, Broadband Fixed Wireless Revenues to Increase 10 Fold, Reports Cahners In-Stat Group.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--June 11, 2001

Despite recent troubles stemming from slower than anticipated service rollouts for MMDS and financial difficulties among the larger LMDS service providers, broadband fixed wireless access (BFWA) will represent a substantial proportion of the broadband (wireline and wireless) market by 2005, according to Cahners In-Stat Group (http://www.instat.com).

Overall, the high-tech market research firm estimates that there are currently over 210,000 subscribers to broadband fixed wireless services throughout the world, including both enterprise and residential customers. While the BFWA market has suffered somewhat, by 2005 service provider revenues from BFWA are expected to increase by 10 times its current level.

"By most measures the Information Age has been severely hindered by the relatively slow deployment of 'last-mile' broadband services throughout the world and especially to enterprises, resulting in pent-up demand for high-speed data and advanced telecommunications services.

"By circumventing the costs and time associated with laying expensive fiber, broadband fixed wireless technology offers an excellent means by which to capitalize on the vast potential of the broadband market," said Becky Diercks, director of In-Stat's Wireless Group.

The market is segmented into three markets, based on spectrum allocation for services. These three markets are: Local Multi-point Distribution Services (LMDS); Multi-channel Multi-point Distribution Services (MMDS); and license-free fixed wireless services that comprise the Industrial Scientific and Medical (ISM) bands and the Unlicensed National Information Infrastructure (U-NII) bands.

MMDS will account for the primary growth in the BFWA market as Sprint and WorldCom increase geographic coverage over the coming years. Towards the end of this forecast period LMDS services and license-exempt services will play a more significant role within the market than they do today.

In-Stat also found that:
-- LMDS broadband services in the United States provide high data rates, but
only over a relatively short distance of three miles. LMDS is primarily a
solution for medium and large businesses. The major drivers to the LMDS market
are the cost of network deployment compared to wireline deployment, the
flexibility of the network and the low service prices that can be offered.

-- Compared to LMDS, MMDS provides slower data rates over longer distances. The
primary prospect base for MMDS services includes the residential, small office
home office (SOHO), and small business markets. The major drivers to the MMDS
market include the vast untapped residential and small business demand for
broadband service and the ability of MMDS to provide advanced services such as
Quality of Service (QoS), voice and video.

-- The license-exempt broadband fixed wireless market in the United States
targets residential, SOHO, small- and medium-sized enterprises. The main
benefit of license-exempt service is that service providers don't have to buy
expensive licenses. The lack of required licenses in these markets, however,
results in an increased level of competition. Increased competition has the
positive impact of driving down prices, and the negative impact of increased
interference.

-- Worldwide BFWA service provider revenues will grow to more than $3 billion
in 2005.


The report, "Troubled Times for the Broadband Fixed Wireless Access Market" (No. MD0103ET), reviews and forecasts the Local Multi-point Distribution Services (LMDS), Multi-channel Multi-point Distribution Services (MMDS), and license-free fixed wireless services markets. Equipment and service vendor profiles are also included.

To purchase this report, or for more information, please visit http://www.instat.com/catalog/cat-md.htm or contact Matthew Woods at 617/630-2139; mwoods@instat.com. The report price is $3,495 USD.

Cahners In-Stat Group (http://www.instat.com/) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

In-Stat is a unit of Cahners Business Information (www.cahners.com), a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.
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Date:Jun 11, 2001
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