Contrary to Recent Announcements, WiMAX Will Target Market Greater than 20 Million Households

Though the largest market segment will be residential users, technology market research firm ABI contends that the target market is much larger for service providers deploying WiMAX equipment.

For fixed broadband wireless access, the target market extends beyond simply residential customers with no broadband alternative. A recent industry announcement pegs the target market as 20 million homes, which presents an incomplete picture. Though the largest market segment will be residential users, technology market research firm ABI contends that the target market is much larger for service providers deploying WiMAX equipment.


Recent research from ABI indicates that by 2008, 42% of all subscribers will be residential or SOHO users while 16% will be small/medium businesses. Factoring in the higher revenue garnered from the small/medium business segment, the gap in service revenue narrows considerably. Further, by factoring in lower churn for the typical business customer, the small/medium business customer becomes a very attractive target market.

"ABI acknowledges that the residential subscriber is the key target market for WiMAX -based services," explains ABI's Director of Research Edward Rerisi. "However, operators have learned from prior mistakes and must target both consumers and businesses to create sustainable business models."

ABI's study on these markets, "WiMAX / 802.16 and 802.20: New Standards Revitalizing Broadband Wireless Access," outlines how these last -mile wireless technologies will enter the marketplace. Beyond equipment revenue, the report includes detailed analysis of the different user segments that will be served by these technologies. A key finding in this market study is that combined revenues for 802.16 and 802.20 equipment will exceed $1.5 billion by 2008.

ABI is a N.Y. -based technology market research firm founded in 1990. ABI publishes market research and technology intelligence on the wireless, automotive, electronics, broadband and energy industries. Details can be found on the web at abiresearch.com or by calling 516 -624 -3113

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