Research Says LOS Issues Tie Up MMDS Future

Yankee Group says fixed wireless is finally gaining momentum as a viable last-mile technology. Despite progress, MMDS still faces an uphill battle to steal market share from DSL and cable modems.

by ISP-Planet Staff [August 31, 2001]

When well-known service providers Sprint and WorldCom purchased billions of dollars worth of Multichannel Multipoint Distribution System (MMDS) spectrum licenses, and vendors such as Cisco, ADC, and BreezeCOM began developing products in this space, the entire fixed wireless arena quickly came under industry scrutiny, according to the recent Yankee Group Report, MMDS Fixed Wireless Set to Become a Piece of the Broadband Puzzle.

Lindsay Schroth, Yankee Group e-networks and broadband access analyst said its been slow-going for MMDS technology,

"In 2000, only 13 U.S. markets and approximately 20,000 subscribers were serviced over this frequency band. However, the Yankee Group does not believe that the slow evolution thus far reflects the future of MMDS broadband access," Schroth said. "In order for MMDS to reach the economies of scale of cable modem and DSL, service providers need to see several developments from equipment vendors."

These equipment developments include:

• Systems must overcome the line-of-sight (LOS) restriction.
• The price of customer premises equipment (CPE) must decrease.
• CPE installation time and complexity must be reduced, and product road maps should include self-install capabilities.
• An interoperable standard that allows for the use of multiple, seamlessly integrated best-in-class products must be established.

The Yankee Group believes that after the long-awaited system enhancements come to fruition in 2002, the total subscriber count will grow to an estimated 887,600 in 2006.

—End

Related articles:
	[June 29, 2000]	Wi-Fi Broadband Competition In Your Backyard
	[Apr. 13, 2001]	Sprint Spreads Spread Spectrum
	[Apr 26, 2000]	Fixed Wireless Remains Viable Broadband Option