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WiFi, WiMAX to drive wireless cap ex to $29.3 billion by 2008, says TIA

Posted: 25 Apr 2005 ?? ?Print Version ?Bookmark and Share

Keywords:wifi? wimax? wireless? mobile broadband?

Wi-Fi and WiMAX infrastructure revenue is expected to reach $5.2 billion and $115 million respectively in 2005, according to the Telecommunications Industry Association's 2005 Telecommunications Market Review and Forecast.

The report expects revenue from spending on wireless capital expenditures to reach $22.3 billion in 2005 and climb to $29.3 billion by 2008, a 7.1 percent annual gain.

"With the Wi-Fi and WiMAX markets expanding rapidly, we will begin to see more demand for mobile broadband and broadband connectivity," said Matthew Flanigan, president of TIA. "Major carriers such as SBC, Verizon and Sprint have already announced deals to expand the number of hot spots and to broaden their networks. It is likely that both of these markets will stimulate the overall broadband market to the benefit of all technologies."

Wi-Fi, which includes wireless standards 802.11, 802.11a, 802.11b and 802.11g, represents a rapidly growing component of wireless communications services. Spending on Wi-Fi services reached $21 million in 2004 and is expected to increase to $45 million in 2005. It will continue to climb at a 99.9 percent compound annual growth rate to $335 million by 2008, the report said.

Spending on Wi-Fi equipment rose 31.8 percent in 2004 to $4.35 billion as Wi-Fi hot spots continue to proliferate. Wi-Fi infrastructure equipment spending is expected to grow at a 12.6 percent annual rate, reaching $7 billion by 2008.

The report also expects WiMAX to emerge as a last-mile broadband wireless Internet access solution for regions where WiFi is currently not feasible, particularly in rural communities. Spending on WiMAX infrastructure is projected to soar from $15 million in 2004 to $115 million in 2005, then rise to $290 million by 2008, a 109.7 percent compound annual growth rate.

- EE Times

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