ABI: WiMax to Beat TargetsABI: WiMax to Beat Targets

OYSTER BAY, N.Y. -- For fixed broadband wireless access, the target market extends beyond simply residential customers with no broadband alternative. A recent industry announcement pegs the target market as 20 million homes, which presents an incomplete picture. Though the largest market segment will be residential users, technology market research firm ABI contends that the target market is much larger for service providers deploying WiMAX equipment.

Recent research from ABI indicates that by 2008, 42% of all subscribers will be residential or SOHO users while 16% will be small/medium businesses. Factoring in the higher revenue garnered from the small/medium business segment, the gap in service revenue narrows considerably. Further, by factoring in lower churn for the typical business customer, the small/medium business customer becomes a very attractive target market.

"ABI acknowledges that the residential subscriber is the key target market for WiMAX-based services," explains ABI's Director of Research Edward Rerisi. "However, operators have learned from prior mistakes and must target both consumers and businesses to create sustainable business models."

ABI Research