WiMAX Will Compete With 3G Services: F&S

by CXOtoday Staff    Dec 20, 2006

The introduction of mobility into the WiMAX roadmap, as well as worldwide the rollout of 3G services in many areas of the world, has created concerns about WiMAX being a direct competitor to 3G.

The concern is more prominently witnessed in the Asian region. The combination of 2.5G such as EDGE with WiMAX is seen as a cost efficient business model as compared to the 3G model.

New analysis from Frost & Sullivan on World Wi-Fi and WiMAX Chipsets Markets, reveals that the revenue in this WiMAX chipsets industry totaled $18 million in 2005 and projects to reach $257.3 million in 2008.

An application of the WiMAX technology, which is developed by the computer industry, has a tremendous potential to influence the mobile telecommunication industry, which is actively indulged in developing their third and next generation networks. VoIP is slowly creeping into the telecommunication market, aided by its cost benefits.

Vinoth Praveen, research analyst, Frost & Sullivan says, “Despite some of the underlying theoretical cost benefits of WiMAX, 3G should not be written off. 3G has a considerable head start. It is well and truly present in most developed markets such as Europe and covers the majority of the population. In contrast, the development and deployment of WiMAX is still a long way. There is yet a degree of standardization to achieve in WiMAX, especially on the mobility front.”

However, the introduction of products based on WiBro and the demonstration of their performance will serve to boost the ‘Mobile WiMAX’ industry, says the analysis.

The analysis examines the world Wi-Fi and WiMAX chipsets market and its manufacturers. The study gives strategic recommendations to overcome the prevailing market challenges.