World Markets for WiMAX Chipsets

Rising Interest in WiMAX in Developing Regions Creates Demand Upswing for Chipsets

Developing countries such as India and China hold the greatest potential for fixed worldwide interoperability for microwave access (WiMAX). The low-cost advantage, combined with the ability to provide connectivity to users as a last-mile access technology is expected to deliver a potent marketing impact in these regions. The low cost of installation associated with the setting up of a WiMAX network in comparison with digital subscriber line (DSL) networks has been a major selling point for fixed WiMAX. In other regions such as Africa, Latin America, and the Middle East, fixed WiMAX networks are also seeing widespread adoption. The semi-urban or rural areas in developing countries are rife with opportunities as they exhibit keen interest in employing WiMAX as a viable option to traditional wireline services. The success of fixed WiMAX is not limited to the confines of the developing countries alone. Fixed WiMAX has a good potential in developed countries as well, especially in underserved areas, wherein the penetration of conventional broadband technologies such as DSL and cable has been hampered by various factors, for instance, rough terrain, notes the analyst of this research service. This ability to provide connectivity to remote areas has been very appealing to the developed nations and is expected to boost revenues in the fixed WiMAX market. Overall, the need for seamless communication and high data rates will sustain interest in WiMAX and drive the demand for WiMAX chipsets. Mobile WiMAX offers substantial promise as it is expected to overcome the limitations of WiMAX and provide complete mobile connectivity. The burgeoning mobile phone and notebook PC segments have opened new vistas for mobile WiMAX. The benefits of mobile WiMAX are varied, freeing consumers from constraints such as limitations on mobility. The success of mobile WIMAX will guarantee sustained growth of WiMAX chipset revenues and it will be touted as the future of wireless connectivity, redefining wireless standards.

Developing Multi-mode Chipsets can Help Participants Strengthen Market Position

Competing technologies such as long-term evolution (LTE), which offer higher data rates could spoil the party for WiMAX and impede the growth of WiMAX chipsets. Although WiMAX has the benefit of a two-year time-to-market over LTE, indications point to LTE as the long-term winner. Emerging technologies such as LTE are expected to ratchet up the demand for dual-mode chipsets. Suppliers must heed the emergence of these competing technologies and offer dual-mode chipset solutions to obtain the competitive advantage. The introduction of multi-mode chipsets will help suppliers maintain their competitive positioning. Product differentiation holds the key to successful business outcomes in this competitive arena. The evolution to the mobile variant of WiMAX lies in the chip vendor's ability to make cost-effective solutions without compromising on key parameters such as power consumption, which is a very critical benchmark for mobile WiMAX-enabled devices, explains the analyst. An equal emphasis also needs to be laid on form factor, with miniaturized form factors necessary to achieve desirable penetration in the mobile WiMAX equipment market. Taking into consideration the cost-sensitive nature of the market, chip vendors must arrive at an unrivalled cost-to-performance ratio.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Baseband chips
• RF transceiver chips