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Cellular Carriers Need to Develop WiMAX Strategy Now
Posted: 23-Jan-2007 [Source: In-Stat]

[Research group, In-Stat, offers some views regarding the impact of WiMAX on the cellular industry in their new research report.]

The impact of WiMAX on the cellular industry is not currently known, but carriers need to put together their strategies concerning WiMAX now, reports In-Stat. For existing cellular carriers, WiMAX may potentially become a big competitor, a great ally, or a minor factor, the high-tech market research firm says. Nevertheless, it's clear that a strategy for WiMAX is the biggest decision cellular carriers have had to make since planning for 3G deployment.

"WiMAX faces many challenges, including multiple incompatibility standards, different frequency allocations in each country, and expensive consumer devices," says Allen Nogee, In-Stat analyst. "But fixed-line WiMAX is here, and mobile WiMAX will be arriving in the next few years."

Recent research by In-Stat found the following:

- Mobile VoWiMAX isn't likely to be used much before 2009.

- There are many "profiles" in different regions of the world, meaning that WiMAX devices will likely operate differently in different regions, unless device manufacturers are willing to accept extra expenses to make a universal WiMAX device that supports all profiles.

- When WiMAX competes with cellular, cellular operators will be forced to decrease their prices for wireless data services over cellular. Even if WiMAX fails after that point, it is unlikely that cellular carriers will ever again be able to charge the amount they currently do for wireless data services.

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