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WiMax operators and telcos both fear that WiMax networks in already crowded markets threaten the profitability of both types of operators: They fear that competition for customers will increase their costs while the demand drives down end user prices, putting the squeeze on profits. That’s one more argument for why WiMax makes most sense in the U.S. in underserved markets.
The U.S. presents an unusual market for WiMax because of the broad availability of broadband and the spectrum situation there. Only a few lucky companies hold the ideal spectrum in which to deploy WiMax. The rest have to grapple with deciding to deploy using unlicensed frequencies. The large major telcos are unlikely to use the unlicensed bands for fear of unreliability.
Both BellSouth and Qwest have tested WiMax-like systems with BellSouth saying it may start offering a service next year.
Posted by nancyg at February 28, 2005 12:18 PM
Categories: competitive landscape
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