Fixed Broadband Wireless Enterprise Customers Account for 93 Percent of Revenue

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BOONTON, NJ. May 15, 2001:

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Even as Wall Street continues to hammer the telecommunications industry, demand for broadband access among small- and medium-sized enterprises remains insatiable, and these customers will increasingly turn to fixed broadband wireless solutions, says a new report from Insight Research.

Insight’s report entitled Fixed Broadband Wireless 2001-2006 projects a healthy $3 billion revenue stream for fixed broadband wireless (FBW) service next year, with 93 percent of sales revenue attributed to small- and medium-sized enterprises. These customers will be attracted to FBW’s low installation costs, rapid deployment intervals, and high reliability, however, they first must be educated regarding these benefits with a simple, clear marketing message. Insight’s research suggests that strong marketing, flawless service, free trials and money-back guarantees will be just as important to sustained success as the price/performance advantages of FBW networks.

“During the boom of the late 1990’s, operators concentrated on rapid expansion strategies with subscriber take-up as a secondary concern.  That time is long over,” says Insight president Robert Rosenberg.  “Infrastructure costs are reaching levels that justify wide-scale network deployment, and there is an immediate opportunity among small and medium enterprises.  The challenge now is primarily marketing-related:  establishing brand equity and trying to secure customers in an increasingly tight marketplace.”

Fixed Broadband Wireless 2001-2006 forecasts FBW subscribers and revenue for <11 GHz, >11 GHz, and Unlicensed bands. Insight segments subscribers by Small/Medium Enterprises, SOHO/Telecommuter, and Residential Consumers. Infrastructure shipments and revenues by equipment type—CPTP Access Links, PMP Base Stations, PMP Remotes, and PTP Transport Links—are also provided. Insight’s forecasts were derived from a bottom-up forecasting model based upon network deployment plans and projected subscriber take-up obtained from over 100 FBW infrastructure providers and network operators, US and Canadian regulatory authorities, FBW trade associations, FBW trade press, and Insight’s proprietary industry databases.

A free report excerpt, table of contents, and ordering information is online at www.insight-corp.com/fixed.asp.

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Donna Savino

at Insight Research

973-541-9600