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January 12, 2009
Mobile WiMAX Market Hits High Note to End 2008
TMCnet Web Editor While most industries struggled this past year with growth under the weight of a sagging economy, worldwide mobile WiMAX (News - Alert) infrastructure revenues nearly quadrupled in the third quarter of 2008 over the third quarter of 2007, according to a new study.
According the report by Dell’ (News - Alert)Oro Group, a market information firm covering networking and telecommunications industries, revenue growth isn’t to slow in the fourth quarter with anticipated growth expected to exceed even this past quarter’s surge.
“Mobile WiMAX revenues were very strong in the third quarter of last year, and we anticipate revenue for the fourth quarter to set another record,” said Scott Siegler, senior analyst of Mobile Infrastructure research at Dell’Oro Group.
“With LTE (News - Alert) still a couple of years away, WiMAX has, in fact, become the first next generation technology with commercial service.”
However, says Siegler, in 2009 WiMAX market to be hit rather hard by the economic downturn. Building out brand new networks from scratch requires tens, if not hundreds, of millions of dollars of capital.
Compounding the tightening in the credit markets, the increasing cost of capital and the decrease in demand for broadband data as consumer spending weakens, “we anticipate many network buildouts will be put on hold or delayed into 2010.”
With initial LTE rollouts coming in the 2010 to 2011 timeframe, delays will shorten the time to market advantage WiMAX currently has over LTE, according to Siegler. Much has been written about the coming turbulence in the Wimax market as predictors and indicators have signaled a shaky market across numerous verticals. TMCnet’s Contributing Editor Gary Kim (News - Alert) recently took a look at some major issues cpmpany’s playing in the WiMax space may face. Check out the article here.
The report also shows that the top four Mobile WiMAX vendors in the quarter – Samsung, Motorola (News - Alert), Alcatel-Lucent and Alvarion – represented nearly 90 percent of the total market.
Tim Gray is a Web Editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Tim’s articles, please visit his columnist page. Edited by Tim Gray WiMAX FEATURED WHITE PAPERSWiMAX FEATURED POD CASTWiMAX BLOGSApril 28, 2009
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