Can WiMAX challenge 3G?

November 29, 2006

Seventy-eight percent of operators surveyed said they have considered an investment in WiMAX, according to Pyramid Research's new report, titled Can WiMAX Challenge 3G? Performance, Economics and Opportunities. 62 percent of those operators plan to invest in WiMAX as soon as next year, with nearly 10 percent suggesting an investment level of more than US$100 million.

"WiMAX has gained significant momentum over the last year--its standardization is complete, vendor and operator ecosystems are expanding, and the hype is getting louder, often justifiably so, as our operator survey revealed," comments Ozgur Aytar, Manager of CMT Research at Pyramid and author of the report.

The report examines real-world examples of pre-WiMAX deployments and reviews practical issues such as time-to-market, business models and pricing, device availability, economics of scale and spectrum availability. All of these factors are evaluated and summarized to answer the burning question--can WiMAX challenge 3G?

The answer will eventually be determined by the operator community. As part of its due diligence, Pyramid surveyed about 100 operators to tune into their views, investments plans, expectations and concerns in respect to WiMAX.

"While much of the discussion around mobile WiMAX is largely speculative today, its promise is compelling and has drawn operators' attention. 3G platforms will likely remain dominant in mature markets; however our analysis of OPEX and CAPEX shows that mobile WiMAX can make significant inroads in high-growth developing countries if it can live up to its promise, particularly on the economics front," continues Aytar.