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Wireless
DSL Gives Long Distance Carriers Direct Entry to Local Phone Markets
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BOONTON,
NJ. November 3, 1999:
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Wireless DSL, a broadband access technology also called LMDS and MMDS "fixed wireless" service, motivated MCI WorldCom's pending merger with Sprint and may prove to be the long distance companies' best strategy for entering the local access market, says a new report by
Insight Research. Sprint's $1 billion in MMDS licenses reach roughly 30 percent of US households; AT&T spent over $100 billion to reach the same number of households with the TCI cable TV acquisition.
According to Insight's report LMDS,
MMDS: Fixed Wireless Options in Telecom Networks, LMDS and MMDS give long distance operators relatively cheap access to local markets. Unlike the cable companies who need to perform plant upgrades before they can offer cable modems,
LMDS/MMDS operators have huge chunks of spectrum ready to go and will be able to offer TV services, phone services, as well as high-speed Internet access. However, convincing customers that these new broadband wireless services will be as reliable as wireline may prove a tougher sell.
"One ill-timed service outage could hobble this industry irreparably," says Robert Rosenberg, president of
Insight. "As AT&T rolls out its bundle of TV service, high-speed Internet access, local and long distance calling, MCI's play will be to roll out services that leverage off Sprint's ION network and its MMDS licenses. But the reliability issue alone could determine whether or not, five years from now, the fixed MMDS purchases were visionary genius or deluded madness," concludes Rosenberg.
Insight expects broadband wireless revenue to top $523 million in 2000, with next year's build-outs crucial to future success. Additional forecasts are published in LMDS/MMDS: Fixed Wireless Options in Telecom Networks 1999-2004, a 174-page market research study. This report provides
LMDS/MMDS carrier and equipment vendor profiles, quantifies broadband access line growth and revenue, and forecasts demand for competing technologies such as cable modems and wireline
DSL.
An excerpt of this study is offered online at www.insight-corp.com/lmds.asp.
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Broadband
Access: DSL or Cable Modems 2002-2007
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WiFi
in North America and Europe 2003-2008
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Broadband
Network Management 2003-2008
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Grid
Computing
2003-2008
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Fixed
Broadband Wireless 2001-2006
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DSL
vs. Cable Modems: The Future of High-Speed Internet Access 2000-2005
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founded
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Donna
Savino
at Insight Research
973-541-9600
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Telecom
Market
Research,
