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MMDS Wireless Internet Services Continue to Expand
Although cable modem and DSL residential services currently dominate the high-speed
Internet marketplace in North America, new initiatives by several large service providers
will introduce alternative broadband technologies to an increasing number of new customers
over the next few years. These alternative technologies, including multipoint,
multichannel distribution service (MMDS), will grow to a market share of 17% by the year
2004, according to market research company Parks Associates, which is now launching its
annual Broadband Access @ Home initiative for 2001.
MMDS broadband service has only recently gained credibility as a technology for
broadband service. MMDS is based on radio-wave technology used for over thirty years to
provide one-way wireless CATV service, but recent upgrades to two-way, full-duplex
capacity have granted it better standing in the field of broadband technology.
"Many industry analysts remain skeptical of MMDS's commercial potential as an
alternative broadband-to-the-home technology," said Michael Greeson, Parks Associates. "Many analysts have characterized the market potential of MMDS
as limited to those who remain beyond the footprint of either DSL or cable services, such
as rural residents, where such deployment remains financially unattractive. However,
recent deployments in major metropolitan areas are challenging this notion and will
ultimately challenge the dominance of cable and DSL in the larger broadband marketplace.
Even our most conservative projections lead us to believe that these alternative
technologies will own a much larger market share than most industry analysts have
predicted."
In recent years, industry titans Sprint and MCI WorldCom have rushed to snap up
existing one-way MMDS licenses and applied for two-way licenses in many other areas. For
its part, Sprint has clearly established itself as a market leader, being the first major
communications company to offer wireless Internet service to residential subscribers.
Sprint plans to have MMDS services operational in 20 markets by the end of 2000, with 50
more markets added by the end of 2001. By that time, the footprint for Sprint MMDS
Internet services alone could exceed 30% of the US population.
Among the other MMDS players, MCI WorldCom, Sprint's former merger partner, has filed
60 FCC applications to establish two-way MMDS service in markets across the country. The
Company plans a national rollout for its fixed-wireless Internet service by the fourth
quarter of this year, with services offered in 60 markets by year-end 2001 and 100 by
year-end 2002.
Nucentrix Broadband Networks, a broadband service provider focusing on MMDS services,
has filed applications for two-way services in 70 markets across Texas and the Midwest and
recently announced the successful completion of an initial technology trial with Cisco
Systems in Austin, Texas. Following regulatory approval, Nucentrix plans to launch
fixed-wireless broadband services in at least 20 markets by the end of 2001.
For additional information about Parks Associates' new multiclient market analysis,
Broadband
Access @ Home, please contact Parks Associates at 972-490-1113 or sales@parksassociates.com.
About Parks Associates: Parks Associates is an
internationally recognized market research and consulting company specializing
in emerging consumer technology products and services. Founded in 1986, Parks
Associates creates research capital for companies ranging from Fortune 500 to
small start-ups through market reports, primary studies, consumer research,
custom research, workshops, executive conferences, and annual service
subscriptions.
The company's expertise includes new media, digital
entertainment and gaming, home networks, Internet and television services,
digital health, mobile applications and services, consumer electronics, and home
control systems and security.
Each year, Parks Associates hosts executive thought
leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. In addition, Parks
Associates produces the online publication Industry Insights in
conjunction with the CONNECTIONS™ Conference series.
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