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WiMAX Business Models: Will New Networks Ever Become Profitable? Product Image

WiMAX Business Models: Will New Networks Ever Become Profitable?

  • ID: 571299
  • November 2007
  • 100 Pages
  • Pyramid Research, Inc


  • AT&T
  • Covad Wireless
  • Iliad
  • Motorola
  • Pipex
  • Towerstream
  • MORE

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 READ MORE >


  • AT&T
  • Covad Wireless
  • Iliad
  • Motorola
  • Pipex
  • Towerstream
  • MORE

Section 1: Emerging WiMAX business models

1.1. Alternative operators choose WiMAX for speed of deployment and low cost
-Operator case study: TransTelecom looks for competitive advantage in WiMAX
-Operator case study: Clearwire’s laser-sharp focus on rural markets pays off
1.2. Fixed-network business models: An alternative primarily where DSL does not go
-Fixed WiMAX finds a home in the Middle East
1.3. Mobile business models: The need for a multi-technology network strategy
-For emerging markets, mobile WiMAX may be a more suitable choice than 3G
-Operator case study: A difficult case for WiBro in South Korea thus far
-WiBro position and pricing
-A competitive, multi-technology broadband market
-WiBro shows signs of life

Section 2: Section 2: Keys to profitability with WiMAX business models

-Level of commitment will determine success
-Parameters for different market environments
-WiMAX pricing trends and differentiation
-Broadband drives revenue; VoIP necessary for uptake
-Is charging a premium for mobility a fallacy?
-The upside of the consumer electronics business
-The wholesale proposition: shorter pay-back periods?
-The bottom line looks bad in the medium term, but model can work

Section 3: Where WiMAX fits, and revenue forecasts

3.1. Identifying the sweet-spots for WiMAX deployment
3.2. Mobile WiMAX revenue forecasts
-The US: Unforgiving environment requires hefty WiMAX investments
-India: Initial focus on the enterprise; opportunities abound in residential market
-France: WiMAX as part of multi-play bundle
-South Africa: WiMAX in conjunction with fixed broadband expansion
-Mexico: Market leaders set the tone
-South Korea: WiMAX as part of a larger broadband play

Section 4: Breaking down the business case and profitability of carrier WiMAX business models

4.1. Definitions and methodology for modeling WiMAX financials and profitability
4.2. Financial models built around real-world deployments
4.3. Sprint Nextel: WiMAX to find new sources of revenue
-Xohm rollout strategy and the significance of Clearwire
-Uptake will be a function of the installed base of WiMAX devices
-Its core business bleeding, Sprint puts WiMAX network in doubt
-Competitive market conditions make time to market crucial
-Substantial Capex required to build the various revenue streams
-Subscription models evolving to cater to a data-centric network
-Monthly subscriptions help ARPU
-Mobile broadband subscriptions lead in revenue generation
-Aggressive wholesale channel strategy promises an upside
-EBITDA in positive territory by year four
4.4. Max Telecom: WiMAX for broadband and — more importantly — voice
-An aggressive wholesale strategy to expand distribution channels
-WiMAX service differentiation around applications and pricing
-WiMAX VoIP more promising than broadband
-Market is ripe for broadband growth
-A cautious approach for network investments
-Adoption will be driven by VoIP and mobility
-Mobility to bring ARPU up
-Broadband drives revenue
-EBITDA slightly positive in year five
4.5. Operator case study: Covad Wireless — fixed WiMAX for the SME market
-Fierce competition for the enterprise customer
-How Covad Wireless competes with the big guns
4.6. Enterprise-focused business models lower Capex requirements
-Higher ARPU for better customer service
-Revenue upside likely with an aggressive wholesale business
-Cash-flow positive in year five

- AT&T
- AT&T Mobility
- Axtel
- Bharti Airtel
- BT
- Clearwire
- Comcast
- Covad Wireless
- Digicel
- Entel
- Ertach
- Horizon Wi-Com
- Iberbanda
- iBurst
- Iliad
- Internode
- Irish Telecom
- Korea Telecom (KT)
- Max Telecom
- MegaFon
- Mobiltel
- Motorola
- MWeb
- Neotel
- Nextel International
- NextNet
- Omnivisión
- Orbitel
- Pemex
- Pipex
- Pipex Wireless
- SK Telecom
- Softbank
- Sprint Nextel
- Telcel
- Telefónica
- Telmex Tonga CC
- Towerstream
- UK Broadband
- VeloCom
- Verizon Communications
- Verizon Wireless
- VimpelCom
- Vodacom
- Vodafone
- Wateen Telecom
- Xanadoo

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