WiMAX Market Poised to Nearly Triple, Semico Says

May 15, 2006

If necessary factors are met, WiMAX will be the leading contender for mobile services amongst wireless solutions with revenues increasing from $21.6 million in 2005 to $3.3 billion in 2010, Phoenix, Arizona-based Semico Research predicts.

The firm asserts that WiMAX will do for broadband what cellular has done for phones - make broadband mobile and will become part of a number of networks, providing broadband wireless access in rural areas, offering backhaul services, offloading data traffic, and making broadband mobile.

"There is controversy surrounding this technology because it is not the only broadband option out there," said Connie Wong, director of wireless communications for Semico, in a statement.

"However, the establishment of global standards, the ability to provide higher throughput and high reliability to the customer, and affordable services in the form of low-priced CPEs will catapult WiMAX into the driver-seat if met," she continued.

According to Semico's recent WiMAX forecast that includes both base stations and CPEs, the market is poised to grow from a mere 6,000 units in 2005 to 4.27 million units in 2010, a compound annual growth rate of 268.3 percent.

"The hype over WiMAX is hot and the market has been flooded by participants. Intel and Fujitsu have invested heavily in WiMAX and their aggressiveness in this market will be a strong catalyst, not to mention it will provide excellent opportunities for start-up companies," Wong concluded.