WiMAX rule unlikely this decade

For the next five years, broadband wireless technology (BWA) in the form of WiMAX is unlikely to pose a big threat to 3G in the Asia Pacific, as it will take longer to mature, reported InStat. This is despite significant efforts of telecom providers to compete with wireless 3G services using various BWA, said the research firm.

"Telecom providers introduced BWA technologies to tap into the wireless trend, accelerate wide market diffusion, and to provide consumers with an alternative or complementary value proposition," said Bryan Wang, InStat analyst. "However, a lack of standardization and interoperability issues has not augured well in adoption rates for most proprietary BWA technologies."

Wi-Fi proved to be a non-successful business model, reported InStat in its Cellular vs. Wireless Broadband in Asia/Pacific report. However, WiMAX is now gaining momentum and is expected to reach 14 million subscribers by 2011.

The firm also found that in 2005, cellphone subscribers reached 859 million, with over 130 million 3G users in the Asia Pacific. Mobile WiMAX devices are anticipated to be available in late 2007.