WiMAX, a wireless broadband technology, has the ability to compete with DSL and cable-modem services without the need for heavy regulation, and that could have a significant impact on the telecom industry, according to market research firm In-Stat. WiMAX supports point to multi-point (PMP) broadband wireless access rates up to 2+ Mbps, over a minimum coverage area of three to five miles. Low network investment costs and non-line-of-sight (NLOS) operation over licensed or non-licensed radio spectrum make WiMAX an attractive technology.

"Yet, the market success of WiMAX is far from certain," says Keith Nissen, an analyst with the high-tech market research firm. "Consumer broadband markets cannot support an unlimited number of Broadband Wireless Access (BWA) service providers. Increased broadband competition, price compression and high subscriber acquisition costs threaten to drive margins ever lower."

By 2009, In-Stat forecasts that approximately three percent of total broadband subscribers, or 8.5 million subscribers worldwide, will be using WiMAX-based broadband wireless access services. Nearly 4.5 million of these wireless broadband subscribers will also subscribe to Voice-over-WiMAX (VoWiMAX) services.

A maximum 15 percent market share is likely available to BWA operators in metropolitan areas. Furthermore, the analyst found that WiMAX is especially suited to emerging country markets, where they have antiquated technology, poor quality outside plant and limited public network capacity.

The report, "Voice over WiMAX: The Key to Wireless Broadband Profitability?" examines the emerging WiMAX Broadband Wireless Access market and the role VoIP will play in its overall development. The report evaluates potential BWA penetration and profitability in varying market segments. A business case study compares consumer and business models, as well as a bundled voice/data vs. a data-only model. Five-year subscriber forecasts for WiMAX and voice over WiMAX are presented by worldwide geographic region. Five-year revenue forecasts for VoWiMAX are also included in this report.

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