Corporate End Users to Represent the WiMAX "Sweet Spot"

Mobile Corporate Use to Dominate Projected WiMAX Market of $49 Billion by 2012

CAMBRIDGE, MA -- (MARKET WIRE) -- November 7, 2006 -- NSR today released its newest market intelligence and forecast report: "WiMAX, 2nd Edition: Analyzing End User Demand Trends." The completely updated report provides an in-depth overview and forecasts of demand trends for 10 customer segments in six regions of the globe for both fixed and mobile/nomadic WiMAX offerings.

WiMAX presents an emerging opportunity for many telecom players, both from established incumbents as well as bold start-ups aiming to compete head-on in the broadband wireless access market. In developing strategies and targets for sustainable business models, NSR predicts that the "sweet spot" of demand within the next five years rests with enterprise end users for corporate-based applications. The so-called "Road Warrior," a highly mobile enterprise user, is expected to present the largest market opportunities for WiMAX in terms of the subscriber base. In revenue terms, the corporate base, which includes fixed and mobile/nomadic users, should likewise garner the highest revenue streams.

"In placing market bets and strategic targets for sustainable ROI models, NSR places its bet with the mobile enterprise user. Although consumer markets could in the long run potentially outpace revenue generation relative to corporate use, we believe the early market cycle hinges on adoption by an end user base that has high disposable income, compelling needs for mobility and broadband solutions, as well as application suite requirements that are best served by an all-IP platform," states Jose del Rosario, senior analyst of NSR and author of the report.

NSR does recognize that consumer markets, which include the "Younger Set" and "College Students," are "wildcards" such that high adoption of WiMAX services could come as a tremendous market boost. "A device such as an integrated 'iPod/Gaming Unit' that is WiMAX-enabled could hit the marketplace and send demand skyrocketing. However, it is difficult to make this bet at this stage of the business planning cycle, since the nuances of consumer taste are difficult to predict or quantify," adds del Rosario.

Form factors will likewise be vital since devices not only enable the end user to use WiMAX services, but the devices themselves are expected to lead to WiMAX subscriptions as end users adopt services based on technology offerings on the latest platforms. In the early market cycle, laptop PCs and Smartphones will be the main springboards for market penetration, and these devices will primarily be adopted by enterprise customers first.

NSR predicts a healthy market for WiMAX equipment and services globally. From a combined revenue base of $1.1 billion in 2007, the market is forecasted to reach close to $49 billion by end-2012, for cumulative revenues of over $132 billion within a five-year timeframe. Key end user groups include "Mid-to-High-level Corporate Users" and the "Road Warrior," with healthy niches that include "Government Users," "Young Urban Professionals," and "Rural Users."

"WiMAX, 2nd Edition: Analyzing End User Demand Trends" is a multi-client report now available from NSR. For additional information on this report, including a full table of contents, list of figures and executive summary, please visit or call NSR at 617-576-5771.

NSR is an international market research and consulting firm specializing in satellite and wireless technology and applications. NSR primary areas of expertise include emerging technology, IP applications, and broadcast services. With extensive expertise in all regions and a number of broadband sectors, NSR is a leading provider of in-depth market insight and analyses.