Broadband fixed wireless technologies will be used to deliver voice, data, and video services as well as Internet access. This is a key message of a new International Data Corporation (IDC) report, which analyses the U.S. broadband fixed wireless services market. According to IDC, the U.S. market for services delivered via these technologies will skyrocket from $767 million in 1999 to $7.4 billion by 2003.
"The growth of Internet traffic is creating a need for increased bandwidth in the local loop, which is a major driver of the market for broadband fixed wireless technologies," said Jeannette Noyes, a manager with IDC`s Worldwide Telecommunications Markets research program. "Other factors driving growth in this market include the Telecommunications Act of 1996, which has created competition in the local telecommunications services market, and technology developments that enable service providers to cost-effectively provide reliable services."
Another major factor inciting growth in the market is Sprint and MCI WorldCom`s investment of over $1.5 billion in MMDS licensees. "Each of the companies found an alternative solution for the local loop. Together, the companies will be capable of reaching more than half of U.S. households via MMDS," Noyes said.
IDC believes wireless access networks offer service providers several advantages, including scalability, a quick return on investment, a fast installation process, and high capacity.
Over the next five years, small and medium-sized businesses will emerge as the primary market for services delivered via broadband wireless technologies. Although residential services will account for 60% of spending for broadband fixed wireless services in 1999, by 2003, the business market will be the larger revenue generator, accounting for 70% of service revenues.
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International Data Corporation (IDC)
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