Appendix C. MMDS Articles ·Dow Jones Interactive Publications Library File:Lllq/Windowsldesktop/MMDS 12-21.Htm
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Appendix C. MMDS Articles ·Dow Jones Interactive Publications Library file:lllq/WINDOWSlDesktop/MMDS 12-21.htm Market For Broadband Fixed Wireless To Grow Shennan Fridman, Newsbytes 12/14/1999 Newsbytes News Network (c) Copyright 1999 Post-Newsweek Business Information, Inc. All rights reserved. FRAMINGHAM, MASSACHUSETTS, U.S.A., 1999 DEC 14 (NB). Voice, data, and video services, as well as Internet access, will be delivered by broadband, fixed (i.e. non-mobile, fixed point) wireless technologies, according to a just released report from International Data Corp. (lDC). The report, "US Broadba Fi ket Assessment and Forecast 1998-2003," analyzes the use ofbroa and fixed wireless technologies in the local loop by US networ servIce providers. It also discusses market drivers and inhibitors as well as key trends occurring in the market. According to IDC, the US market for services delivered via broadband, fixed wireless technologies will increase dramatically from $767 million in ]999 to $7.4 billion by 2003. The report also looks at service offerings and providers using frequencies below 10 gigahertz (GHz), as well as those operating in millimeter-wave frequencies, and includes forecasts for US fixed wireless customers and service revenue, segmented by the residential and business markets of all sizes. "The growth ofJJJternet traffic is creating a need for increased bandwidth in the local loop, which is a major driver ofthe market for broadband, fixed wireless technologies," said Jeannette Noyes, a manager with IDC's Worldwide Telecommunications Markets research program. In an interview with Newsbytes, Noyes also claimed that other factors drivinggrowth in the broadband, fixed wireless market include: the Telecommtqrications Act of 1996, which has created more opportunities for competition in th~:19~an~l~communications serVices market; technology developments that enable service proyiders, to"co:$t:-effe~ti~ely prov.idtrn::lia1.?le .s~rvice; as well as the investment b S rint and Mel W~rldComofover 1.'5 bi" S (multi-channeT, multi-point dlstri utlon servIce) l~s. According to IDC, wireless access networks offer service providers several advantages, including scalability, a quick return on investment, aJll$t,installation,process, and high,capacity. IDC forecasts that over the next five years, ~mall and medium-sized businesses will emerge as the pri ket for services delivered vi, ' adband wireless technolo ies. ResiaentiaI services will account for 60 percent ofspending for broadband, fixed wire ess services in 1999, but bY 2003, the business market will be the larger revenue generator. accountin~ for 70 percent ofthe total The reason most ofthe business marketis prc::dicted to lie with small to inediWn~~ized enterprises is that larger businesses, according to Noyes, are more likely to have access to, or be able to, justify the cost ofinstalling fiber optic transmission capability. Also, small to medium-sized business do not need the capacity offiber. More information about International Data Corp. and the study can be found at http://www.idc.co~ Reported by Newsbytes.com, http://www.newsbytes.com ) of40 1/4/20008:18 AM ·Dow Jones Interactive Publications Library file:///Ci/WINDOWSlDesktopIMMDS 12-21.htm US Wireless Broadband To Soar - Strategis Report Ian Stokell, Newsbytes 12/06/1999 Newsbytes News Network (c) Copyright 1999 Post-Newsweek Business Information, Inc. All rights reserved. WASHINGTON D.C., U.S.A., 1999' DEC 6 (NB). A new rep~rt from telecom research and consulting company The Strategis Group, predicts that wireless broadband revenues will increase at a 418 percent compound annual rate over the, next five years, fueled by demand for high speed Internet access and local telephone service. John Zahurancik, vice president ofbroadband information ofThe Strategis Group, said, "By 2003, we forecast that no less than 34 percent ofUS households and 45 percent ofUS businesses will be serviceable by broadband wireless networks." According to the report, "Wireless broadband technologies such as local multipoint distribution service (LMDS) 'present an inexpensive means to market entry' for local telephQ:p.e service." Peter Jarich, spokesman for Strategis, told Newsbytes, "We're forecasting revenue in those three spectrums - LMDS, MMDS , and unIiceI)~ed spectrum - which means it doesn't include (companies) like WinStar or even AT&T." .. ~ Explaining the basic drivers ofgrowth, he said, "One ofthe basic drivers is the growth ofthe Internet - businesses and consumers are going to be moving to the Internet more and more, and moving to high speed Internet. High-speed Internet is really the main'driver. People are getting tired ofdial-up and they want something that can provide them with all the great things the Internet promises. Businesses, as well as consumers, are demanding those high ~peed connections." But he added that voice services too\vi1) oe"amajor factor'. "The other driver for revenue is voice services. (Broadband) is going to have a voice focus as time goes on. The early focus js 20ing to be h~ed Internet because that is whe,re ~hedemand is, and that's where there is a lack ofsupply." He continued, "Voice is really where you'·see~~~i~~r~~enues. Be~au~~ people are willing to pay a premium for voice services. Ifyou lose a packet, or lose e-mail, that's one thing - it can be resent, you may not notice it, or ifyou're connection is slow you're kind ofused to it and it'll get faster, or it may be just a glitch - but you notice problems with voice. So premium voice service will always have a premium paid for it. " •• 'j "., • "., "And when those voice services start being pmducedthat's when you are going.to see the revenues really ramp up.'" . Finally, large carriers offering bundled~ervige~~.l1be aIlothermajor revenue source. Said Jarich, " Mel, Worldcom ,Sprint, and AT&T...'.you see these bigger carriers getting into it....and what you're seeing is operators that have a lot ofmoney to build up these systems. They have the brand and marketing potential out there to drive the market." Consumer demand for bundled servi¢~~j~~~ey.,~.·Our,S1,lry~ys.al.ways!~l;towth~t what customers are looking for is bundles - they wantlocal; long distance, and'Internet all from one.carrier, and (you can) throw in mobile wireless and pagipg. And ifyou can get to the customer and provide that to them, that really the key. But you have to get there before anyone else. Then you can really leverage that connection." The report says that, in 1997, "less than five ven,clorshad the ability to pr'odu~e an operating LMDS system, and few had been tested extenSively. Today, any number ofvendors - including major 40f40 1/4/20008:18 AM Dow Jones Interactive Publications Library file:///Ci/WINDOWSlDesktop/MMDS l2-21.htm integrators such as Lucent, Nortel and Ci~co - canprovide a working system. Capable ofvoice, data, Internet and video services, these systems can meet any customer's local access needs." Jarich said the report was based on the activity ofthe operators that are in those spectrums, including their stated business plans, their deployments to date. "US Wireless Broadband: LMDS, MMDS and Unlicensed Spectrum" is available for $2,400 in hard copy and $3,600 for CD-ROM formats. Reported by Newsbytes.com, http://www.newsbytes.com 16:54 CST . Contact: Press Contact: 202-530-7500, Strategis Group IWIRES TELECOM, BUSINESS1 ,::~ -', ('-, ' ", ",,!> "'.- :.1 ~ ,.:~. :( Cisco Has New Wireless Strategy ", By CLIFF EDWARDS .; .' 12/0111999 AP Online Copyright 1999 The Associated Press. All Rights Reserved. SANTA CLARA, Calif. (AP) - Internet equipment provider Cisco Systems Inc. on Wednesday offered a new approach to bringing high-speed, low-cost Web connections to homes and businesses. In an attempt to resolve a problem thathas~plagued television watchers and cellular phone users in big cities for years, Cisco plans to market technology that essentially harnessesand redirects the voice and data microwave signals that bounce offmany obstructions in large cities. When these signals ricochet offobstacles like buildings, trees and hills, they cause "ghosting" that distorts pictures on televisions and interferes with cell phone calls. The service is called multichannel multipoint distribution services, or MMDS . It could help companies such as Mel Wor)dco~,thatare'hoping tei provide local phone and Internet services to businesses and consumers in large metropolitan areas avoid the billions ofdollars in costs of building expensive fiber optic networks. It also could speed reliance on the Internet for commerce, learning and entertainment - a key goal for Cisco and its core business ofproviding equipment to connect business computer systems. "Our goal is to be able to build altemativeaccess technologies ... and provide consistent service delivery" overany type ofcommunications device," said Don Listwin, Cisco's executive vice president for corporate marketing. Engineers at Clarity Wireless, which Cisco acquired last year, decided to adapt ghosting phenomenon, which has troubled many consumers, and special encoding techniques to transmit digital voice and data, eliminating what had been an obstacle to reliable communication - the need for fixed lines ofsight between the transmitter and the receiver. With a base station that costs $15 0 mall cellular towers or satellite' , businesses could 0 er ntemet c.onnections and local'and long:-distance phone service to tens. ofthousands of customers in a given city. ciSCO technolo'gy ipthe base station would allow 3.000 simultaneous users to receive data 1,000 times faster than they would from a typical voice line. 50f40 1/4/20008:18 AM Dow Jones Interactive Publications Library file:///qIWINDOWS/DesktopIMMDS 12-21.htm users to receive data 1,000 times faster than they would from a typical voice line. The service is being touted as an inexpensive way to connect computer systems fonnedium- and small businesses and an alternative hi~h-speed connection fOr homes I ranscelvers expected to cost less than $50030uld be marketed to consumers as early as June, Cisco executives said at a media and analyst briefing.