Mobile WiMAX networks are being rolled out more slowly than expected, meaning that service revenues will grow more slowly than forecast a year ago, a new study from Juniper Research has concluded.
According to Juniper, the WiMAX Broadband report found that revenues from WiMAX 802.16e broadband subscribers will exceed $15 billion globally by 2014. WiMAX will provide an improved experience for broadband customers who are receiving low speed DSL or cable modem services, or at the limit of DSL coverage.
However, WiMAX is faced by spectrum auction postponements in several countries, funding problems from the credit crunch, and slow network implementations, all combining to handicap network operators signing up subscribers.
These factors – some of which are outside the control of the WiMAX ecosystem – are holding back the market. Report author Howard Wilcox warned: "Whilst market leaders such as Clearwire are launching services and expanding internationally, there are also well-publicised challenges for WiMAX such as those highlighted by French regulator ARCEP. Overall, we've had to reduce our forecasts: we're on the cusp of make or break time for WiMAX."
In addition, the report determined that the WiMAX ecosystem needs to deliver by translating trials into reliable, commercial services that attract customers.
Further findings include:
- North America, the Far East and China and Western Europe together will account for 70% of the market by 2014
- Mobile WiMAX has a role to play in providing broadband in developing countries where there is no wired network. Africa and the Middle East, South America, the Indian Sub Continent and Eastern Europe will together be worth some $4bn by 2014