Point-to-Point (PtP) Broadband Wireless - RBC Capital Markets estimates that public PtP broadband wireless will generate revenues of approximately $8.1 billion for calendar year 2007, excluding large OEM companies. This represents approximately 60% year-over-year growth from 2006.
- The following bullets highlight what RBC Capital Markets believes are the drivers for future PtP growth.
- RBC Capital Markets believes there are two primary drivers for PtP broadband wireless. The first driver is coverage. This continues to be one of the primary discriminators for operators to capture market share.
- The second primary driver is capacity. Capacity is important because of increasing trends of demand for data transfer,
- talk-time and mobile data will take hold. Base Station growth will be fueled by traditional wireless and new applications such as 2.5G and third-generation (3G) and (4G) wireless. .
- Despite significant build-out of the Internet backbone during the past couple of years that has made bandwidth available to metropolitan area networks (MANs), RBC Capital Markets believes that a gap still exists between the MAN and the buildings it surrounds. With less than 3% of buildings connected to fiber, a significant opportunity exists to bring bandwidth from the fiber to these buildings with broadband wireless technology to serve their occupants' growing information demands.
Point-to-Multipoint (PtMP) Broadband Wireless The following bullets highlight the drivers for future PtMP growth:
- The Strategis group estimates that fixed wireless is expected to grow to more than $13.6 billion of worldwide consumer premise equipment (CPE) product sales by 2007 with worldwide service revenues mounting to $40 billion.
- Forecasts are more likely to come true once next-generation technologies enabling non- line-of-site (NLOS) and user installation are available. With NLOS at least 25% more customers can be served within the same geographical footprint. This could mean the difference between convincing service providers to put their money into deploying broadband wireless technology en masse. With the release of high power 2.4Ghz and 5.8Ghz MESH , NLOS has improved dramatically. Driven by these catalysts, companies positioned with low-cost products that have simple user installation, low maintenance, and international distribution and support are positioned for growth.
Points to Note:
• The growing Broadband Wireless industry is no different than any other new market. The early explorers have mapped the terrain, and now the settlers are moving in for growth and expansion.
• At the end of the day, the ultimate driver for broadband wireless will be the speed and simplicity the technology provides to connect the world's insatiable appetite for bandwidth to an efficient fiber-optic network backbone. This applies to next generation mobile systems as well as fixed broadband wireless network access for businesses and homes
worldwide.
• By Reducing costs and improving non-line-of-site coverage, emerging technologies will drive point-to-multipoint solutions to mass deployment. Many in the market believe that low-frequency customer premise equipment costs will be driven to less than $200 in the next 12 to 24 months, Hotware-Zigwire Solution CPE now are less than $200 each.
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