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21 August 2008

Upfront

Wireless broadband services experience tremendous growth
While cable modem and ADSL service providers have had a jump start on the future of Internet access, the Allied Business Intelligence group believes that its future is definitely wireless. According to the group, there were fewer than 100,000 wireless broadband subscribers in 1998. By 2004, that number is predicted to rise to over 4 million, or close to one-fifth of the total broadband access pie (see Figure 1). Some promising contenders for leading wireless broadband technologies are LMDS and satellite services.

Analysts at Allied Business Intelligence believe that one major roadblock for wireless broadband providers, however, could be a slow uptake of high-frequency devices. While this will affect the price of customer premises equipment, analysts believe that wireline technologies may be better suited for the home, and wireless broadband access better for business applications.

The recent purchase of MMDS properties by such large players as Sprint and MCI Worldcom and the impending satellite systems due to begin service in 2004 will add even more diversity to the wireless access portfolio.


Figure 1: Composition of the broadband access pie.


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