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WiMAX Spectrum More Economical
Than 3G
Other Topics: WiMAX Metro Area
Network, Russia WiMAX Network
Robert Hoskins
Broadband Wireless Exchange Magazine
January 17, 2006
The price paid per Hz for WiMAX spectrum is as much as 1,000 times lower
than for 3G spectrum according to the latest report from leading
research firm Maravedis titled “Spectrum Analysis - The Critical Factor
in WiMAX versus 3G”. This white paper provides an in-depth review of the
economics of spectrum for both 3G and WiMAX around the world.
“The low cost of BWA/WiMAX spectrum compared to 3G is a clear driver for
service providers to enter the field of wireless services with WiMAX”
explained Adlane Fellah, author of this new research. |
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The much lower cost of WiMAX/BWA spectrum resulted in a high number of
licensees with a total 721 license holders were awarded for BWA/ WiMAX
against 106 licensees for 3G.
North America is by far the leading region in terms of the number of
BWA/WiMAX licenses awarded with a total of 394 BWA/WiMAX license
holders, against 186 licensees in Europe, 97 licensees in Asia, and 49
licensees in the CALA (Caribbean and Latin America) region.
Maravedis’ latest research also revealed that, contrary to 3G licenses,
the BWA/WiMAX licenses awarded across the world are essentially regional
licenses. North America is a perfect example of a situation where 100%
of its WiMAX/BWA licenses are regional. In Europe and the CALA region
the proportions are 78% and 71% respectively.
Maravedis predicts that this crowded environment will result into a
highly fragmented, unpredictable and more competitive marketplace with
smaller and cost-aggressive players.
On the other hand, a low-cost spectrum has also attracted players with
more modest pockets than large mobile operators. “One should remember
that BWA spectrum was initially allocated for fixed only applications
and remains so in many countries,” Fellah added.
The report also suggests that most regulators have not kept pace with
the progress of technology that makes fixed-mobile convergence a
reality. Whether it is fixed applications with CDMA technology or mobile
applications with WiMAX, the two fields are converging and will be
competing for a share of the one billion mobile subscribers market.
Maravedis is a leading research and analysis firm focusing on Broadband
Wireless technologies including WiMAX, 802.20, TD-CDMA and Wireless
Local Loop Systems. Maravedis has established itself over the years as
the most credible and reliable resource for market intelligence in the
broadband wireless industry. Maravedis works with equipment vendors,
service providers, regulators and the investment community to produce a
sound market analysis based on hard primary data and on in-depth
understanding of technology, market and regulation trends. |
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