Wireless Broadband Services to Grow Tremendously

The future of Internet access is very much wireless, despite the head start cable modem and asymmetrical digital subscriber line (ADSL) service providers have had in rolling out services, according to Allied Business Intelligence (Oyster Bay, NY). While wireless is barely in the picture at this moment, it is apparent that the wireless sector will also benefit from the Internet and data movement.

Allied Business Intelligence sums up the wireless broadband access market in Wireless Broadband 99: Fixed Access Delivery Methods and Marketplaces, a report that covers local multipoint distribution service (LMDS), multichannel multipoint distribution system (MMDS), satellite, 38 GHz, and fixed wireless technologies.

Starting from a handful
There were fewer than 100,000 wireless broadband subscribers in 1998; by 2004 that number will rise to more than four million, or close to one-fifth of the total broadband access pie. LMDS and satellite services will be the two leading wireless broadband technologies. Although the wireless sector share is much smaller than the wireline share, it is due to the slower rollout of wireless technologies.

A roadblock for wireless broadband providers could be a slow uptake of high-frequency devices, effecting the price of customer premises equipment. However, the cost factor will be a stumbling block for consumers—not businesses that the wireless broadband providers are targeting. In fact, while wireline technologies may be better suited for the home, wireless broadband access may be better suited for business applications.

Wireless providers will also have to create name and brand recognition and established reselling channels, all areas in which wireline providers already are well versed. However, wireless broadband providers will be able to overcome these obstacles, despite the significant head start of wireline operators in offering services.

The future is bright
As wireless providers come on board and continue to build out in new areas, the outlook can only continue to improve each year. Starting with the initial roll-out of LMDS and 38 GHz services in 1998 and 1999, Allied Business Intelligence cites the recent purchase of MMDS properties by such large players as Sprint (Westwood, KS) and MCI Worldcom (Jackson, MS). Finally, the impending satellite systems due to begin service in 2004 will add even more diversity to the wireless access portfolio.

For more information, contact Allied Business Intelligence at 516-624-3113.