Wireless Too Expensive For ISPs
Posted: 19th Feb, 2003 By: MarkJ
The latest research from Ovum has indicated that many ISPs, especially smaller providers, find the prospect of entering the wireless services sector to be an expensive one:
Even the lure of a low reserve price for the 3.4GHz wavelength, previously used for telephony services, may not be enough to tempt many smaller independent ISPs.
And rather than use the frequency to roll out broadband access to consumers, as the government hopes, larger telecoms operators could take advantage of the removal of many restrictions to snap up the licences while continuing to use the frequency as extra bandwidth for their existing services.
"In the financial climate who has got the hunger left to deploy new networks? This means fixed wireless is still struggling to sell," said Michael Philpott, a broadband market analyst with Ovum. The most likely outcome could be that licences are sold to major players such as BT, according to Philpott.
On paper the wireless spectrums, such as 3.4Ghz, may seem more economical than ADSL, however economies of scale mean that ADSL prices are dropping while fixed wireless is standing still. More @ VNUNet.
Even the lure of a low reserve price for the 3.4GHz wavelength, previously used for telephony services, may not be enough to tempt many smaller independent ISPs.
And rather than use the frequency to roll out broadband access to consumers, as the government hopes, larger telecoms operators could take advantage of the removal of many restrictions to snap up the licences while continuing to use the frequency as extra bandwidth for their existing services.
"In the financial climate who has got the hunger left to deploy new networks? This means fixed wireless is still struggling to sell," said Michael Philpott, a broadband market analyst with Ovum. The most likely outcome could be that licences are sold to major players such as BT, according to Philpott.
On paper the wireless spectrums, such as 3.4Ghz, may seem more economical than ADSL, however economies of scale mean that ADSL prices are dropping while fixed wireless is standing still. More @ VNUNet.
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