According to this report, both licensed and unlicensed Wireless Internet Service Providers (WISPs) benefit the most from the short term opportunities with BWA/WiMAX. This will not generate massive adoption but will contribute to building credibility of the WiMAX business case.

802.16e-2005, commonly called “mobile WiMAX, ” faces many hurdles. With LTE gaining momentum among US mobile operators, Sprint-Nextel, as the leading proponent of WiMAX, must send a clear signal to the market about its mobile WiMAX development plans.

“Sprint-Nextel does not have sufficient leverage to build a nationwide WiMAX network without additional external funding. One first scenario is a spinoff of its WiMAX unit while retaining ownership of the spectrum. The second scenario is for Sprint to execute a slower build-out than previously announced, along with a more modest CAPEX investment, ” said Adlane Fellah, CEO of Maravedis and a contributor to the report.

“A third or complementary scenario is to use only part of the spectrum for WiMAX, leaving room for LTE, ” said Robert Syputa, Maravedis Senior Analyst.

“The current regulatory environment in the US, along with important participation from the industry and standards groups, provides a strong pro-BWA framework, but mobile broadband applications and business models are still immature and not well understood, ” said Tim Sanders.

KEY FINDINGS INCLUDE:

• WiMAX and non-cellular BWA technologies present opportunities for smaller and regional companies as well as their investors.
• Non-Sprint-Nextel WiMAX subscribers will grow from a half-million at the end of 2007 to over 10 million by 2013.
• LTE will be the dominant mobile broadband technology in 2012, with trials starting in 2010.
• Opportunities for WiMAX in the 700 MHz bands are real, but will not start materializing until at least 2010.