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Maravedis and Tonse Predict WiMAX Subscribers in INDIA to Reach 21 Million by 2014

Leading research firms Maravedis and Tonse Telecom release 2nd Edition of Report "INDIA Wireless Broadband and WiMAX Market Analysis and Forecasts 2007-2014".

MONTREAL, Canada, and BANGALORE, India, October 23rd, 2007 – The leading telecom market research and analyst firm Maravedis, in partnership with Tonse Telecom, the leader in telecom market research and analysis in India, today released the 2nd Edition of the report entitled “INDIA Wireless Broadband and WiMAX Market Analysis and Forecasts 2007-2014.” This study provides a detailed review of current regulatory challenges and overall wireless/WiMAX market trends in India.

“Vendors, operators, and system integrators are coming together like never before to work with whatever is available to trigger a bandwidth revolution,” said Sridhar Pai, co-author of the report and founder of Tonse Telecom—a partner of Maravedis. “Despite the spectrum complexities, the key engines for broadband growth, and the unclear situation on freeing the bandwidth, operators are not willing to wait—2008 could well become the ‘Year of Wireless Broadband’ for India and fulfill the expectations that had been anticipated for 2007,” continued Pai.

Maravedis estimates up to 21 million WiMAX subscribers in India by 2014. According to the report, the steady CPE price reduction significantly impacted the potential ARPU, therefore contributing to favorably changing the market perspective. “Companies such as Telsima overcame the CPE price reduction of 50% as early as Q2 2007.Consequently, the big carriers are itching to go: Reliance, amongst others, already started commercial WiMAX services in Bangalore and has a number RFPs on the way, but we believe there are more large-scale deployments to come,”said Adlane Fellah, CEO of Maravedis.

The Indian economy is flourishing, and the demand for telecommunications services has outpaced the legacy wired telecommunication infrastructure. “In a country where broadband penetration is only 0.2%, we conservatively estimate that in the next 12 months, about 250,000 CPEs and 5,000 base station sectors will be sold in India. If some of the larger projects go through, the upside could be as high as 10,000—12,000 sectors and about 500,000 CPEs,” said Pai. “At current equipment costs and given the bulk discounts expected by Indian operators, the total CPE/BS equipment market for 2008 may reach $50 to $120 million. This is a substantial jump over the previous year and could be just the beginning of what might become one of the world’s top three WiMAX markets,” added Fellah.

Key Findings:

  1. WiMAX-enabled notebooks and handheld device shipments will reach 14 million units in 2014.
  2. WiMAX-enabled stand-alone CPE shipments will peak at 3.6 million units in 2012 before declining.
  3. The accumulated WiMAX subscriber base in India will reach 21 million in 2014.
  4. By 2014, approximately 66% of WiMAX subscribers will be using 802.16-2005 (predominately residential), while 802.16-2004 will continue to be driven by large corporations and, to a lesser extent, by SME customers.
  5. India is expected to see the world’s lowest end-to-end cost for WiMAX service and costs driven down faster than in any other market.
  6. Computer penetration is still very low at around 4%, and the Indian telecom sector operates in a volume-driven market. However, new applications will be built (as they have in the mobile sector) that will ignite large-scale usage.
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About Maravedis
Maravedis is a leading research and analysis firm focusing on BWA technologies including WiMAX, 802.20, TD-CDMA and Wireless Local Loop. Maravedis works with service providers, vendors, regulators and investors to produce a sound market analysis based on hard primary data and an in-depth understanding of technology, market and regulation trends. www.maravedis-bwa.com.

About Tonse Telecom
Tonse Telecom delivers research, analysis and consulting services for the Indian telecom sector. Tonse Telecom provides Market entry, Custom Research, Investment Advisory and product consulting services to wireless and telecom companies both in India and overseas. Tonse is the preferred telecom training partner for leading consulting houses in India and also provides Executive Market Briefing services. Tonse has a global client base and is staffed with domain experts who bring unprecedented insight to our customers. Tonse is headquartered in Bangalore, India. http://www.tonsetelecom.com

 

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