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WiMax and Cellular Convergence with 802.16e will launch battle for mobile services

Cambridge, MA, March 24th, 2005 - WiMax will revolutionize the fixed wireless broadband (FWB) market as expected, but it will be primarily a solution for fixed carriers argues Pyramid Research’s new report, “Positioning WiMax: How WiMax Stands Up To DSL, Cable, Wi-Fi and 3G.”  A survey from the report revealed that industry players expect WiMax to be deployed largely by fixed operators and ISPs to provide backhaul and high-speed internet access.  Respondents are also optimistic about WiMax’s future potential as a mobile solution.

WiMax and cellular convergence will have to wait until the next generation of WiMax, 802.16e, comes to market in 2007.  Fixed carriers with 802.16d networks will be the first to rollout 802.16e.  Report author Ozgur Aytar expects this adoption pattern “to provide fixed providers with the capability to offer mobility services and compete for mobile data market share.”  

Pyramid Research forecasts total WiMax subscribers to reach 10.9m by 2009 with the majority on 802.16d networks, but 802.16e subscribers will exhibit a 64% CAGR from 2009-2012.  Early WiMax subscribers will churn from existing FWB networks.  Expect faster growth if the costs associated with network deployment and subscriber adoption drop even faster than anticipated.  Operators in developing countries and rural markets in particular will have a great opportunity to use WiMax for backhaul and broadband access.

Aytar concludes, “With the next-generation of WiMax, the technology will live up to the hype – but time is working against WiMax as competing technologies like HSDPA emerge. Vendors need to bring their solutions to market on-time and up to specifications.”

About “Positioning WiMax: How WiMax Stands Up to DSL, Cable, Wi-Fi and 3G”
This report examines the prospects for WiMax within the context of the other competing broadband technologies now and in the future.  Also included are WiMax subscriber forecasts and the results and analysis from a survey completed by more than 400 industry insiders.  

About Pyramid Research
Pyramid Research is the growth strategy expert for the global communications, media and technology industries.  Founded in 1986, Pyramid provides research and consulting services in over 100 countries - helping clients to go beyond existing boundaries by tracking and exploiting business opportunities worldwide.  For more information on Pyramid Research visit www.pyramidresearch.com.

Press Contact:
Jared Jost
Pyramid Research

jjost@pyr.com
(617)494-1515

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