WiMAX Equipment Off to a Positive Sales Start

July 29, 2005

A research firm says revenue from WiMAX equipment sales are off to a good start, with a nearly eight-fold increase expected this year. According to Infonetics, which studied the worldwide WiMAX market, equipment revenue in 2004 totaled $16.4 million, and is expected to increase to $124.5 million in 2005.

Initially, WiMAX is being deployed as a wireless backhaul solution, but will be deployed as a mobility application starting in 2007-2008 once the 802.16e standard is ratified and WiMAX-capable client devices enter the market, marking a ramp-up in the market.

Outdoor mesh network access nodes, currently used primarily by municipal authorities to provide broadband network coverage for their mobile workers, also represent a small but rapidly growing wireless segment, totaling $8.8 million in 2004 and growing to $110.4 million this year.

“WiMAX promises many strategic opportunities, not just as a backhaul solution for WiFi, delivering additional bandwidth to hotspots, but potentially for 3G networks too,” said Richard Webb, author of the report. “WiMAX may become a viable DSL/cable broadband replacement technology for consumers, and may even offer nomadic or portable wireless Internet access for consumers and enterprise users. Operators could also use it to carry VoIP services.”