Cisco Competitive but Not Dominant in WiMAX Market
7/7/2009 -- Who's the big winner in the burgeoning WiMAX equipment segment? Hint: It isn't perpetual market leader Cisco Systems Inc.
WiMAX equipment bragging rights belong, instead, to Israeli wireless specialist Alvarion, which -- along with Alcatel-Lucent, Motorola, Huawei, Samsung and Cisco -- comprise the constellation of WiMAX haves, according to market watcher Infonetics Research.
These six vendors "represent the major forces in the worldwide WiMAX market, with over 100 publicly announced mobile WiMAX customers between them," Infonetics reported in its recent "WiMAX Equipment, Devices and Subscribers" survey.
On the other hand, the market watcher conceded, WiMAX equipment sales -- like sales in other networking categories -- have been hard-hit by the ongoing economic crisis.
"Having grown at lung-busting speed for a couple of years, a slowdown and pause for breath for the WiMAX equipment market probably would have been inevitable even without the recession. As it is, economic conditions are exacerbating the pause, with worldwide fixed and mobile WiMAX equipment revenue down 16 percent from the previous quarter, and further declines expected in [the second quarter of 2009]," said Richard Webb, directing analyst for WiMAX and other wireless technologies with Infonetics, in a statement.
There's nonetheless a silver lining to an otherwise bleak WiMAX sales forecast, Webb insisted. "[F]or 802.16e, the decline is temporary: a positive growth curve should start for the mobile WiMAX market toward the end of this year and continue through 2010," he said.
Through the rest of this year, he added, WiMAX deployments will creep along, but "fundamental drivers remain sufficiently strong to expect revenue growth to return to the overall market," possibly by the end of this year. Next year, Webb said, WiMAX equipment sales will surge, thanks in part to pent-up demand.
Alvarion has cemented its WiMAX bona-fides by successfully transitioning customers to its new 802.16e infrastructure, according to Webb. --Stephen Swoyer
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