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Rise in 3G and 4G Mobile Service Adoption

At the end of 2008, only 11 percent of worldwide wireless subscriptions were on the 3G mobile standard. However, by the end of 2013, the percentage of 3G and 4G subscriptions will reach 30 percent, according to the latest study by In-Stat.

Apparently, this growth trend is already reflected in fourth quarter 2008 wireless infrastructure contract awards.

WiMAX will now likely compete -- to some degree -- over the next couple of years with the rise of HSPA and LTE. In-Stat expects mobile WiMAX to be attractive in developing countries and remote locations in which fixed broadband networks are not yet deployed.

It is still unknown whether or not mobile WiMAX will be competitive in locations with existing 3G cellular and fixed broadband networks.

"Based on contract awards, WiMAX deployments are remaining resilient in the face of the economic slowdown, although some operators are slowing the deployment rate" says Daryl Schoolar, In-Stat analyst.

The current WiMAX equipment vendors, Alcatel-Lucent, Alvarion, Motorola and Samsung are benefitting from the trend. Other vendors to watch include Cisco, Huawei and ZTE, according to the In-Stat assessment.

In-Stat's market study found the following:

- 802.16e, the mobile standard for WiMAX, has been mainly deployed for fixed and nomadic services. Clearwire, Korea Telecom, and UQ of Japan are among a few notable exceptions that are embracing 802.16e for mobile data applications.

- There were 132 announced deployments in the fourth quarter of 2008, consisting of 95 HSPA, 18 WCDMA, 12 mobile WiMAX, six CDMA EV-DO, and one TD SCDMA.

- Based on the contract award activity over the past few quarters, In-Stat expects most of the deployments through new live networks to be WiMAX and HSPA. In-Stat has seen a significant slowdown in contracts for WCDMA and CDMA EV-DO equipment.

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