WiMAX operators hit by economic downturn
Consulting firm Maravedis reports that at the end of Q3 2008, the number of WiMAX subscribers around the world rose to 2.68 million, “a more modest 13% growth over the first quarter and a 91% increase over Q3 2007.” Maravedis analysts say that the pace of growth is slowing down and WiMAX operators are finding it more difficult to squeeze more money out of their customers.
[Clarification from Maravedis: the 2.68M number includes people who are using pre-WiMAX equipment, i.e. proprietary fixed wireless equipment such as Motorola Canopy and others.]
Here are some interesting statistics:
- The average subscriber base per deployment remains very modest at 15,000 and contributes to the lack of volumes facing the emerging device ecosystem.
- Clearwire USA continues to be the top operator in terms of the number of subscribers, with 469,000 subscribers in the United States at the end of Q3 2008 – an increase of 1.54% compared with 461,850 subscribers reported in Q2 2008.
- Q3 2008 recorded ARPU was US$46.45 and US$125.48 for residential and business subscribers respectively, compared to US$46.70 and US$135.30 for the same segments in Q2 2008.
Because WiMAX – fixed and nomadic – is just starting to be deployed across the world, it’s too early to tell how well it competes against cellular networks. There are number of hurdles that WiMAX operators have in developed countries and especially in urban areas of those countries:
- People already have a lot of broadband alternatives: DSL, cable or fiber at home and in the office; 3G on their mobile devices; Wi-Fi in many locations such as hotels, cafes, restaurants, convention centers and Wi-Fi hotzones; some cities have citywide Wi-Fi.
- Few WiMAX devices are available and many people have put off buying new laptops and smart phones. Nokia cancelled their 810 WiMAX Tablet, which they barely marketed.
- No roaming agreements between WiMAX operators.
- In the US, no WiMAX service (yet) in key urban areas (LA, NYC, Chicago, SF Bay Area, Philadephia, etc.).
- Resistance among mobile users to dragging around WiMAX dongles.
It remains to be seen, however, just how quickly WiMAX operators will recover when the economy picks up (some predict this won’t happen till 2010). I noticed that many WiMAX operators got investments from Intel, which simply wants to sell WiMAX chips. Recently, Intel had to write off $1 billion of their investment in Clearwire.
Related news:
Nortel exits mobile WiMAX market
Why Clearwire needs LA (or NY) by 2011
Nokia cancels N810 WiMAX Tablet
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“the number of WiMAX subscribers around the world rose to 2.68 million” I do NOT beleive your number of 2.68 million WiMAX users. Are you including all the “Pre-WiMAX” equipment which is NOT WiMAX? Most all of Clearwires customers are using NextNet equipment not WiMAX equipment.
Please Clarify!
The 2.68 million in the Maravedis report is worldwide, not just the US. I believe it includes pre-WiMAX but I will ask.
Those are a combination of BWA and WiMAX numbers. We provide detailed breakdowns to our customers.
So by BWA, you mean pre-WiMAX? Many people are not familiar with the terminology.
Also for those of you interested in buying a single issue of the Maravedis quarterly report, it is 1495 EUR. Four issues is 2995 EUR. You can go to the Maravedis website to order: http://www.maravedis-bwa.com/
Clarification on the meaning of BWA: Adlane emailed and said that BWA means broadband wireless access which traditionally has been proprietary
fixed wireless equipment such as Canopy and others.
So Layne, you are corrext in saying that the 2.68M number includes pre-WiMAX, not true WiMAX.
Adlane Fellah Says: “Those are a combination of BWA and WiMAX numbers.” if that is true the number is way off! BWA existed long before WiMAX. BWA includes products like EtherLinx’s and all other wireless technologies including long range WiFi etc.
IE: PAR Proposal:
Standard for Broadband Wireless Access (BWA) Systems, Roger B. Marks, Chair IEEE 802 Executive Committee Study Group on Broadband Wireless
PAR Proposal PURPOSE: To enable rapid worldwide deployment of innovative, cost-effective, and
interoperable multivendor broadband wireless access products. To facilitate competition in
broadband access by providing alternatives to wireline broadband access. To facilitate
coexistence studies, encourage consistent worldwide allocation, and accelerate the
commercialization of broadband wireless access spectrum.
Target Completion Date to RevCom:
January 31, 2001 http://www.ieee802.org/minutes/mar1999/par_bwa.pdf