U.S. Wireless Broadband: LMDS, MMDS and Unlicensed Spectrum February 17, 2000 Presented By: Peter Jarich & James Mendelson
The Strategis Group Broadband Information Services Telecom Information Services Since 1964 Global Presence Publications in All Fields –Wireless Broadband –Internet User Trends –Branding & Bundling –Competitive Telephony & Convergence –Consumer, Financial, Technology Focus Online News Services
WHAT? What Is Fixed Wireless? Why Is It Important?
The Wireless Local Loop? Fixed, not mobile. Not simply voice. All you need is spectrum!
The Spectrum? Three emerging technologies. Individual characteristics. Individual costs.
The Importance? New Technologies Living Examples Major Carriers Real Drivers
WHY? What is the Fixed Wireless Business Model?
Fixed Wireless Cost Structure 80% Labor Cost vs. 80% Equip. Costs “Backhoes Don’t Obey Moore’s Law.” - Tren Griffin VP Strategy, NEXTLINK
Fixed Wireless “Control Structure” Facilities Competition is the only option! Profit Control Service Control The Reality of the 14 Points Resale Unbundle Local Loop Unbundle T-1 On-Network Profit Margins Service Control
Wireless = Bundling (Practice) Wireless Exceeds Expectations! 35%35+% 25% Bundling Take Rates
mi MMDS Cell Site Migration Macro to Micro- cellular deployments. More spectrum per end-user. More bandwidth per end-user. Cell Site Migration 5-10 mi
WHO? Who has Launched Broadband Wireless Services and Where is it Available?
Local Multipoint Distribution Service Hype Becoming Reality Urban & Rural Major & Minor Players NEXTLINK HighSpeed.Com
MMDS - Wireless Cable Following the Cable Model One-Way & Two Way Urban & Rural
MMDS - Wireless Cable Sprint & MCI WorldCom Battle AT&T with Nationwide Coverage ~200 Markets Rural & Urban Operational Non-Operating
Unlicensed Spectrum Broadband The Early Winner? 200+ Markets Rural Deployment Multipoint
HOW MUCH? What Revenues will Wireless Broadband Earn?
Forecast Assumptions Internet as Key Driver –current emphasis –local phone service is ubiquitous –new technologies and mission-critical voice Scope of Total Internet Market –2003 Business Penetration = 74.1% to 91.8% –2003 Residential Penetration = 83.6% –2003 Access & Transport Revenues = $34.1 Billion Target Markets Launch Dates
Network Coverage - Business
Network Coverage (Households)
Broadband Wireless Subscribers Business Subscribers
Broadband Wireless Subscribers Residential Subscribers
Service Revenues By Technology Millions, $ 2003 Total: $3.4 Billion
Broadband Wireless Market Share By Service
WHAT DOES IT ALL MEAN? What Conclusions Can We Draw?
U.S. Wireless Broadband Perspectives Wireless Broadband Is Here Today Wireless Is Not Just Voice Wireless Meets End-user Demand For Bundles Wireless Meets Operator Demand For Revenue And Service Control Revenues Are Growing Quickly And Will Be Substantial!
U.S. Wireless Broadband: LMDS, MMDS and Unlicensed Spectrum To Purchase:Tim Riordan (202) Further Questions:Jamie Mendelson (202) Price: $2,400 (pdf/html) $2,900 (print)