Broadband Wireless technology is a tool, not an end in itself.  Wireless has always been an alternative for high-speed connections, but never has the range of choices been as great or the rate of innovation as rapid.  The BWE Web Site delves into the world of broadband wireless and other fixed wireless connections that deliver data rates from less than T-1 (1.5 Mega bits per second (Mbps) up to and beyond 155 Mbps.  These wireless connections serve the same function as wireline or fiber -- interconnecting public and private networks.

Point-to-Point (PtP) Broadband Wireless

    RBC Capital Markets estimates that public PtP broadband wireless will generate revenues of approximately $1.1  billion for calendar year 2004, excluding large OEM companies. This represents approximately 60% year-over-year growth from 2003.  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) wireless.  According to market research firm Allied Business Intelligence, new wireless base stations worldwide are expected to grow more than three times from 823,000 to 2,639,000 by 2003.

• 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 surronds.  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

    RBC Capital Markets estimates that public PtMP broadband wireless companies generated revenues of approximately $650 million for calendar year 2000, excluding large OEMs.  This represents approximately 109% year-over-year growth¹. The following bullets highlight the drivers for future PtMP growth:

• The Strategis Group estimates that fixed wireless is expected to grow to more than $3.6 billion of worldwide consumer premise equipment (CPE) product sales by 2003 with worldwide service revenues mounting to $10 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.

• From the carrier's standpoint, it is all about system cost.  Customer premise equipment pricing less than $200 to $400 will be necessary instead of the $1,500 to $4,000 and multi-hour installation currently being experienced.  Ultimately, the broadband wireless marketplace is poised for significant growth once CPE costs are lowered, truck rolls are reduced and infrastructure costs are reduced. 

    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 $500 in the next 12 to 24 months¹.

To learn more about broadband wireless technology, click here.

1. Source:  RBC Capital Markets,  Broadband Wireless: the Worldwide Assessment