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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:
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Large-scale deployment in a developed market by an MNO (assumptions driven by Sprint Nextel’s WiMAX business model)
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Build-as-you-go deployment in an emerging market by a market entrant (assumptions driven by Bulgarian operator Max Telecom’s WiMAX business model).
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Service provider focused on the enterprise market.
On close examination, we find some parts of the WiMAX value proposition fairly compelling, and others not entirely convincing.
To learn more about WiMAX Business Models: Will New Networks Ever Become Profitable?, download the report excerpt, which includes a report preface, table of contents, and a list of exhibits.
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