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WiMAX Spectrum More Expensive in Developing Markets

Cambridge, MA, February 13, 2007—WiMAX Spectrum costs are higher in developing markets says Pyramid Research in its latest report: “Deciphering the Cost of WiMAX Licenses.”  In order to achieve accurate and balanced comparisons between countries, the report calculates price per MHz per population which equals the price paid for the license divided by the amount of spectrum in MHz in a given frequency band divided by the population covered by the license.

“The cost of WiMAX per MHz per population has been higher in markets with low broadband penetration,” comments Dan Locke, Analyst at Pyramid Research. “Perhaps counter-intuitively, WiMAX spectrum is also more expensive in lower income countries, an indication of the higher perceived opportunity for WiMAX in such markets,”

The report observed that the cost of WiMAX spectrum is affected by several factors including population characteristics, buying power of potential customers, broadband and mobile penetration, spectrum allocation and the competitive landscape. The report found the median price per MHz per population, calculated from licenses sold in a sample of 17 countries, to be US$0.01.

“The relative price paid for WiMAX spectrum has been highest in countries in the Middle East and Central and Eastern Europe,” says Locke. The report estimates that high relative price points are due to WiMAX’s stronger competitive position, thanks to limited 3G deployments, lack of 3G licenses and low broadband penetration.

About Pyramid Research
For twenty years, Pyramid Research has helped companies in the converging communications, media and technology industries stay ahead of market trends, understand competitive threats and capitalize on opportunities.  We advise the world’s leading vendors, service providers, equipment manufacturers, and the financial community on how to implement best practices, build offensive growth strategies and drive profitability.

Press Contact:
Amalia Vega
Pyramid Research
P: 617.494.1515 ext 231
E: avega@pyr.com

*The findings discussed in this release are based on an analysis of the following markets: Australia,  Bahrain, Brazil, Bulgaria, Canada, Denmark, Germany, Greece, Hungary, Iraq, Jordan, Norway, Russia, Singapore, Switzerland, The United Kingdom and The United States.

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