WiMAX equipment market growing, but vendors' commitment to be tested

The market for WiMAX equipment and devices grew to $275 million worldwide in 2008, according to a new study by Infonetics Research.

The increase in sales for WiMAX equipment was mainly driven by a 188% increase in sales of 802.163 mobile WiMAX equipment such as such as ASN gateways, base transceiver stations and customer-premises equipment. Worldwide sales for 802.16e mobile WiMAX devices such as ultra mobile PCs, phones and external data cards grew by 121% in 2008, the study reports. The study also shows that mobile WiMAX subscribers grew to 3.9 million in 2008, a 120% increase from 2007.

But despite solid growth in sales and customers last year, Infonetics says 2009 will be a bumpier ride for WiMAX vendors. Specifically, the firm says that WiMAX infrastructure revenue will be "subdued" by the current global recession. Even so, WiMAX services should see their sales and subscriber bases increase throughout the year as more WiMAX networks go online.

"The WiMAX market will be leaner in 2009, leading vendors to rationalize their strategies," says Infonetics analyst Richard Webb. "Nortel has exited, Alcatel-Lucent has transitioned its mobility research and development to its Long Term Evolution (LTE) program, and others will have their commitment to WiMAX tested."

Webb says that Alvarion, Alcatel-Lucent and Motorola are the leading vendors for WiMAX equipment and devices, and that Huawei and Cisco are starting to emerge as leading contenders as well.

Sprint became the first major U.S. carrier to commercially launch a WiMAX network last September in Baltimore. The company is partnering with Clearwire in a $14.5 billion venture to build out a WiMAX network that will deliver wireless broadband on a nationwide scale.