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Latin America’s WiMAX Market to Exceed $1 Billion In Revenues During 2009-2013

Another positive note for WiMAX market, Signals Telecom Consulting has published a couple of reports which estimate that Latin America’s WiMAX market is to to surpass US$1.04 Billion in revenues during 2009-2013. WiMAX will also account for around 1.8% of broadband connections in the region over the same time frame.

The report reveals that the WiMAX business model is developing from being an alternative to wired broadband access into a means for strengthening operator offer through service bundling.

“Delays in the certifying of equipment and the building of economies of scale that were promised by the Xhom and Clearwire launches in the United States, added to negative announcements on WiMAX by Alcatel Lucent, Nortel Networks and Nokia Mobile, have deprived launches of new operations using this technology of their dynamism. We have however noted cases, such as that of Embratel in Brazil, where WiMAX is used to penetrate markets where operators still do not have a fixed line network, to be able to wire them later with HFC networks,” indicated Carlos Blanco, Market Research Director for Signals Telecom Consulting and author of the reports.

High customer acquisition costs, wireless broadband access service proliferation by means of HSPA and lower speeds than those available via wired alternatives such as DSL or cable modem have been the main barriers faced by WiMAX in its attempt to position itself as a viable alternative broadband connection in urban centers.

In total, at 1Q09 there are 26 operators offering wireless broadband services by means of various WiMAX technologies, or that have indicated their intention to migrate their networks to 802.16 technologies in the medium term.

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