FIXED WIRELESS BROADBAND INDUSTRY PROJECTED TO NEARLY DOUBLE IN FIVE YEARS; NEW DATA SHOW IT’S THE MOST COST-EFFECTIVE SOLUTION FOR UNDER-SERVED AREAS
Sep 25, 2017
Carmel, CA – A new report by analyst firm The Carmel Group forecasts robust growth for the U.S. fixed wireless broadband industry, with the nationwide number of subscribers projected to nearly double from more than 4 million at the end of 2016 to 8 million by 2021. Core industry revenues are expected to nearly double from $2.3 billion to more than $5.2 billion.
The report also says the economics of fixed wireless make it the most cost-effective broadband solution for rural and other under-served areas because networks can be built and upgraded faster and at a fraction of the cost of networks based on DSL, fiber, or cable (see chart).
“Based on a wealth of new data, The Carmel Group rates the BWA industry’s growth prospects as stronger than those of cable, fiber, and satellite TV,” says report author Jimmy Schaeffler. “Optimism is in short supply in today’s pay TV and broadband markets, so the fixed wireless industry is an exciting success story.”
“Ready for Takeoff: The BWA Industry Report 2017” is the most comprehensive study ever conducted of the Broadband Wireless Access (BWA) industry. BWA providers are also called “fixed wireless” providers or “wireless internet service providers” (WISPs).
BWA providers transmit high volumes of internet data to fixed locations such as residences, businesses, and community anchor institutions using antennas mounted on towers and buildings. In contrast, mobile wireless networks generally transmit lower volumes of data to non-stationary receivers such as smartphones.
According to the report, the U.S. BWA industry is composed of more than 2,000 mostly small- and medium-sized businesses in all 50 states, with an average of 1,200 customers each. BWA providers are also proven success stories in other nations including Australia, Canada, Italy, the Philippines, and Russia.
The report delves into the key industry growth drivers, including:
- Explosive consumer demand for broadband services, especially video, and pent-up demand in under-served areas; Favorable network deployment economics
- The industry’s ability to use unlicensed and shared spectrum resources
- Ever-improving technology at competitive prices (including global-standards-based LTE equipment)
- Expanding capital availability
- The emergence of new markets and service categories that BWA can support
The report also notes that while the overall outlook for the BWA industry is highly positive, there are significant challenges, including a bias in federal regulations toward the needs of national mobile wireless carriers and urban fixed wireline solutions such as cable and fiber.
The report is based on independent research conducted in 2016, including 30 two-hour interviews with representatives of wireless broadband service providers, vendors, and thought leaders. Other sources included the Wireless Internet Service Providers Association (WISPA), Wireless Communications Association International (WCAI), bankers and financiers, other groups and telecom companies, and filings at the U.S. Securities and Exchange Commission. Extensive surveys of operators, equipment manufacturers, and vendors were distributed to members of WISPA and WCAI to gain another layer of research and analysis. A higher-than-average response rate to the surveys translates into an unusual degree of confidence behind both the surveys and the report.
The report is available from The Carmel Group or www.WISPA.org. Detailed survey data is available for sale by contacting The Carmel Group.
Cable Passes Satellite For DVR Popularity
Jul 17, 2007
Other Survey Trends Target Advertisers, Women
Industry Projections Show 46 % of U.S. TV Households Become DVR Users By 2010
Digital Video Recorders (DVRs) installed into cable-served TV households (TVHHs) have recently surpassed the number of those in satellite-served video HHs, according to a new set of projections and estimates released by The Carmel Group. Part of an annual DVR study entitled, Digital Video Recorders 2007: Time In A Magical Box,†the work also includes a nationwide survey of nearly 2,200 U.S. DVR users and non-users, focused on their likes and dislikes when it comes to DVRs and related digital services.
The Carmel Group study projects that nearly half of all U.S. TV homes will be equipped with a DVR system by 2010. Presently, The Carmel Group estimates nearly 26 million U.S. DVR users. In addition to the cable industry DVR resurgence, three key trends are particularly worth noting from the study. First, is the receptivity of subscribers, especially women, to relevant and interactive ads. Second, is the indication that DVR-Users tend to be early adopters of bundled multichannel services. Third is that privacy concerns are limited among DVR-Users. This data supports advertisers moving toward relevant, interactive and pin-pointed advertising, especially if they can ally with technologists capable of matching the specialized ad to the individual, wherever and whenever. On a related note, more than half of our survey’s DVR-Users would be receptive to searching for ads, in an interactive sense, related to the products and services they are interested in buying.
The cable TV industry passed the satellite industry in 2006, and now claims the majority of DVR users at 56%, followed by satellite at 38%, the telcos at 1%, and standalone providers, such as Tivo, at 4%. For cumulative DVR revenues, the industry has generated more than $13 bil. Since 1999. By 2008, the study projects the top four manufacturers in the DVR industry will be Scientific Atlanta [SFA], Motorola [MOT], EchoStar’s DISH Network [DISH], and TiVo [TIVO], and. The top operators installing DVRs today are, in order, Comcast, DirecTV, EchoStar and Time Warner.
The Carmel Group’s consumer survey focuses on the effects of DVRs on women and advertisers. An additional part of the survey looks at the consumer demand for related digital services, such as broadband, HDTV and the local delivery of TV stations.
The Carmel Group’s study is available for purchase, if interested please contact at jimmy@carmelgroup.com or (831) 622-1111.
Western European Capex Future Riding on Broadband and Wireless Growth
Jul 10, 2006
Digital media consulting and market research firm, The Carmel Group, today announced the release of its in-depth special study, focusing on the state of the telecom capital expenditures in 15-western European countries, involving 18 major telecom companies.
Entitled Telecommunications Capex Western Europe, 2006 Study,†it provides critical pieces of data for telecommunication-based companies looking to implement network strategies and tactics involving leading western European cable, satellite and telephone operators. The Carmel Group projects that Western European telecommunication companies will increase overall annual capex by an average of 7% during the next two and a half years, through 2008. A large percentage of the future European telecom growth will come from broadband and wireless deployments.
Further, these telecom companies will generate significant revenues from acquisitions and infrastructure investments in key high subscriber growth markets beyond their core geographical centers, such as Eastern Europe and Latin America, as well as North Africa and West Africa.
Historical capex figures are calculated to 2000, when telecommunication companies in Europe began investing significant funds to upgrade networks, purchase new equipment, and acquire licenses for advanced services. Post 2000, European telecommunication companies significantly decreased their capex spending, as they spent less on acquiring licenses and new equipment, and focused their efforts instead on managing their networks and improving cash flow.
The study produces strong insights into and quantitative snapshots of leading telecom companies, highlighting capex data, key demographic stats, capex spending and company outlooks.
The 87-page, 23-chart study is available for $1499. To download a copy of the report, please contact at jimmy@carmelgroup.com or (831) 622-1111.