Independent WLL Market Viability Still In Doubt

Bethesda, Maryland: According to a new major multi-client report by Dittberner Associates, Wireless Local Loop based on any of the existing mobile cellular air interfaces is still a viable approach. It is cost effective because the equipment is manufactured in moderately high volume and the market for it is very competitive.

Donald Dittberner, president of Dittberner Associates, states, "Just a few years ago, WLL seemed to raise great expectations for solving a number of problems related to the deployment of new telephone service. As it stands today, the installed base of WLL service achieved throughout the world has been disappointing, particularly when viewed against the high hopes raised by the industry. Today, roughly only a million lines of WLL equipment have put in service worldwide. That falls far short of what was predicted", Mr. Dittberner went on to say, "The reason for this poor showing does not seem to lie in the lack of a suitable technology or the availability of equipment. In fact, a wide variety of technological approaches have been introduced and many have been abandoned because of a lack of economic success over the longer term. Shared use of cellular systems for a mobile and fixed terminals appear to be the most attractive economically viable solution".

The scope of the report.
"Fixed Wireless Access to the Public Switched Telephone Network"
WLL, LMDS, MMDS and Wireless Optical Access Systems
Published by Dittberner Associates, Inc
Includes 826 pages, 78 products and 56 major world-class vendors

The study emphasizes that since WLL was first applied, there have been three areas where its application promised to bring a number of advantages over the use of copper technologies.

• Providing telephony services in rural areas that are very thinly populated
  and where cable laying would be more expensive than applying WLL.
• Providing relief in urban areas in which the capacity of the outside plant is
  exhausted and where upgrading this capacity is exceedingly costly, particularly if only a few additional lines are needed.
• Providing a superior and more cost-effective way for CLECs to compete with an incumbent LEC.

While economic models clearly show the advantages of WLL in each of these three cases, practically no deployment has occurred and most vendors of WLL equipment consider the U.S. market
non-existent.

The reasons for the lack of significant WLL deployment:

• Little or no spectrum dedicated to WLL around the world.
• Incumbent carriers prefer to use fiber or copper loops.
• WLL for cable relief in urban environments not attractive except in unusual situations.
• WLL for CLECs is not cost effective if unbundled local loops are available, particularly if spectrum shared.
• Regulatory issues not permitting new carriers to obtain rural service subsidy.

The report focuses largely on broadband fixed wireless systems.
It includes market forecasts for each fixed wireless technology.

For additional information,
Dittberner Associates, Inc.
e-mail: sales@dittberner.com
www.dittberner.com
Tel 1 301 652 8350

Dittberner Associates, Inc. is an international market research and consulting firm specializing in the analysis of advanced technologies for the global public telecommunications network. Through its multi-client study series, THE Dittberner PERSPECTIVE, and custom studies, the company provides guidance in many areas of the telecommunications industry including: technology assessment and forecasting, market requirements analysis and market forecasts for telecom equipment and services, public and private network planning, corporate and business planning, new venture / new business development, and tariff and regulatory policy formulation assistance. Fore more information, visit the company's website at www.dittberner.com

Dittberner Associates, Inc. 4641 Montgomery Avenue, Suite 100, Bethesda, MD 20814 USA

Telephone: +1 (888) 652-8382 Fax: +1 (301) 657-8084 E-mail: sales@dittberner.com