Asian WiMAX Deployments to Threaten 3G Carriers, Help Equipment Makers

Telecom News Editorials Reports Glossary

Asian WiMAX Deployments to Threaten 3G Carriers, Help Equipment Makers

5:30 am on September 17, 2007 | Category: Wireless Technology, Telecom Services, Internet, Wireless, WiMAX, Cellular

A number of Asian countries have resolved in recent months to adopt and promote WiMAX, a super high-speed wireless broadband technology which some analysts believe could ultimately threaten existing 3G wireless providers.

With its impressive bandwidth and range, WiMAX has the potential to cover anything from a bustling city to a remote village, and could be useful in both developed markets like South Korea and emerging ones like Vietnam.

The island nation of Taiwan is the latest proponent of WiMAX technology, granting six spectrum licenses in the past months, and pressuring the respective carriers to have their networks up and running within the next 18 months.

Analysts expect WiMAX equipment makers, such as Gemtek Technology Co Ltd., D-Link, ZyXEL Communication Corp., and Accton Technology Corp. to experience significant revenue growth in the coming quarters. Cell phone manufacturers like Samsung and LG are also likely to experience growth, as they begin to release WiMAX-enabled handsets and other devices.

“A key reason (to build WiMAX) is to drive the manufacturing industry for equipment vendors, and to create and nurture this ecosystem quickly,” commented Bill Rojas, the director of telecom research at International Data Corp (IDC).