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WiMAX Equipment Sales Surge to $1.6B

From an almost non-existent market in 2004, worldwide WiMAX equipment revenue surged 759 percent in 2005, hitting $142.3 million, according to Infonetics Research's quarterly WiMAX and Outdoor Mesh Network Equipment report.

Infonetics forecasts the worldwide WiMAX equipment market to continue expanding rapidly, with a 5-year unit CAGR of 139 percent between 2005 and 2009, when the market reaches $1.6 billion.

Outdoor wireless mesh access nodes, currently used primarily by municipal authorities to provide broadband coverage, represent a modest but rapidly growing wireless segment, totaling just under $110 million in 2005 (up 1,114 percent from 2004).

"Thirst for broadband is driving demand for more bandwidth, with enterprises connecting more sites and service providers connecting more POPs, WiFi hotspots, and increasingly, 3G base stations," said Richard Webb, analyst at Infonetics Research. "They need to do this cheaply and wired solutions are not always available or cost-efficient. That leaves WiMAX with a big future, as it offers a viable wireless solution to growing broadband connectivity and backhaul demands."

Market Highlights

- For the quarter, WiMAX revenue topped $46 million in 4Q05 and units reached 33,000, boosted by certification of WiMAX products late in the year
- In 4Q05, 47 percent of total WiMAX revenue was from base stations, 53 percent from CPE
- In 2005, 42 percent of WiMAX equipment was from North America, 30 percent from EMEA, 24 percent from Asia Pacific, and 4 percent from CALA; North America has been the pioneer region for WiMAX deployment; strong growth is expected in Asia Pacific in coming years

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