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WiMAX Business Models Will New Networks Ever Become Profitable?

Pyramid Research
Market Study  November 2007

Up to 5 user license - USD 2490.00  

Description
WiMAX deployments continue to increase in number, with the technology being adopted in more than 70 countries across the world. The business case, however, is yet to be proven, and the main question remains unanswered: how will WiMAX operators make money?

Should a WiMAX business model resemble that of fixed broadband or 3G, a mix of the two, or something completely new? To be sure, the development of an ecosystem of WiMAX-enabled consumer electronics could create the possibility for new, innovative services — and hence new revenue streams. In a bid to ascertain whether WiMAX is truly worth the risk, this report analyzes the business models as well as operating and financial metrics of existing and prospective WiMAX deployments in emerging and developed markets as well as for enterprise use. In reviewing the economics and profitability of WiMAX operations in different environments, the report uncovers WiMAX business models that have more in common with traditional broadband operations, which in the residential market are experiencing increasing commoditization and declining margins. There is a push, led by Sprint Nextel’s Xohm project, toward turning the traditional model on its head, from a predominantly subscription-based story to an open-access model that relies on the development of a strong ecosystem of consumer electronics manufacturers, content providers and third-party service providers.

The report is accompanied by three Excel-based financial models, which track the operational and financial performance of WiMAX deployments built around the following parameters:

• Large-scale deployment in a developed market by an MNO (assumptions driven by Sprint Nextel’s WiMAX business model)
• Build-as-you-go deployment in an emerging market by a market entrant (assumptions driven by Bulgarian operator Max Telecom’s WiMAX business model). 
• Service provider focused on the enterprise market.

  Key questions answered

  • What kind of business models, strategies and revenue streams will be offered in mature and emerging markets?
  • What are the economic realities of launching a new WiMAX business?
  • How will open-access models change the scope of mobile broadband business models?
  • What is the profitability potential of different WiMAX business models?
  • What are the key drivers of profitability (or lack thereof)

  
  Target audience
  
  Operators
  Quantify the long-term revenue potential of the different WiMAX business models to determine whether to adopt WiMAX as a complement to existing networks or as a substitute for other broadband options.

  Vendors
  Assess the opportunity for WiMAX infrastructure, devices and services in different market environments.

  Financial institutions
  Assess the viability of WiMAX business models to support decisions on investment opportunities in new and existing WiMAX ventures.

  Financial services, investment firms
  This report will help you assess the long-term financial prospects for mobile service providers and telecom equipment vendors at a global level. Pyramid Research’s forecasts of metrics such as mobile subscriber and user penetration will help you make strategic decisions to maximize the return on your investments.

  
  Some of the companies mentioned in this report are
  

  AT&T AT&T Mobility Axtel Bharti Airtel BSNL BT Clearwire Comcast Covad Wireless DBD Digicel Entel Ertach Horizon Wi-Com Iberbanda iBurst Iliad Internode Irish Telecom KDDI

  Korea Telecom (KT) Max Telecom MegaFon Mobiltel Motorola MWeb Neotel Nextel International NextNet Omnivisión Orbitel Pemex Pipex Pipex Wireless SK Telecom Softbank Sprint Nextel Telcel Telefónica Telmex

  Tonga CC Towerstream UK Broadband VeloCom Verizon Communications Verizon Wireless VimpelCom Vodacom Vodafone VSNL VTR Wateen Telecom Xanadoo

On close examination, we find some parts of the WiMAX value proposition fairly compelling, and others not entirely convincing.

For full details, please email jeremyk@cmsinfo.com

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