WiMAX and 3G are Poised to Deliver

US : To satisfy consumer and enterprise demand for wireless data, carriers will continue to deploy traditional cellular networks in the form of GPRS/ WCDMA and CDMA2000-based networks. Other carriers will deploy emerging technologies based on the IEEE 802.16 and 802.20 standards. According to technology research firm ABI, infrastructure spending on these technologies will reach $16 billion by 2007. However, the vast majority of this will be spent on traditional cellular technologies, rather than WiMAX / 802.16 or 802.20 equipment.

"Though WiMAX will play a significant role in the industry, the markets for traditional cellular networks will continue to dominate due to their ubiquitous nature," asserts ABI's Director of Research Edward Rerisi. "Until consumers and businesses demand ever-present fixed/portable broadband wireless coverage, 802.16/20 deployments will not be as extensive. This leaves the door open in the foreseeable future to traditional cellular networks, as operators deploy EDGE, WCDMA and CDMA2000 networks to boost data throughputs and alleviate voice congestion on today's networks."

ABI projects that the market for WCDMA and CDMA2000 1X EV-DO deployments will expand over 40% on a CAGR-basis over the next four years, eventually representing nearly 70% of the overall infrastructure market in 2007. For the first half of 2003, contract announcements have been on the rise, indicating momentum for the equipment providers. Most recently, agreements have been forged in August between:

· Ericsson and Kazakhstan operator Altel for a CDMA2000 1X network
· Lucent and KTF for a CDMA2000 1X EV-DO network
· Nokia and Hong Kong CSL Limited for an EDGE network
· Ericsson and Vodafone Greece for a WCDMA network
· Nokia and Sunrise for a WCDMA core network
· Nortel Networks and Centennial Communications Corp. for a CDMA2000 1X network

These select contract announcements represent wins for EDGE, WCDMA and CDMA2000 networks and illustrate the gradual, but inevitable transition to higher-capacity cellular networks.

An examination of the pending transition to 3G, as well as the various hurdles faced by operators, equipment providers and startups, are included in ABI's Wireless Infrastructure Subscription Service. A regional review is also included, giving subscribers a view of how networks are changing worldwide.