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With 3G services launching across Europe, plenty of sources are discussing the potential affect that WiMax may have on 3G: 3G is an expensive service to roll out, which translates into higher prices for end users as operators look to pay off their investments. By contrast, WiMax offers a better return on investment, which means cost for end users might be less expensive so that WiMax could steal some market share that may otherwise have gone to 3G.
Consultancy TelecomView expects WiMax and other broadband wireless technologies to corner 40 percent of the broadband wireless market in 2009, with 3G taking the rest. Realistically, that’s a bit of a stretch. It’s 2005 and WiMax equipment doesn’t even exist yet, so it’s unlikely that in four years it will make up almost half of the market, given that 3G networks are already being rolled out. However, the business case for WiMax is a bit cleaner than that for 3G so it clearly has potential.
Posted by nancyg at January 3, 2005 4:44 PM
Categories: competitive landscape
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