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Alternative Telecom Operators To Embrace WiMAX: Study

Competitive telecom operators will embrace WiMAX wireless broadband service by 2006, making the technology -- and voice service using the technology -- available to consumers, a study released Tuesday by the META predicts
Ultimately, the wireless broadband service will give the competitive telcos a third revenue stream beyond traditional voice-over-copper and voice-over-IP services, the study said.

The report focused on so-called competitive local exchange carriers, sometimes called CLECs, who previously have had access to incumbent carriers' infrastructure. They can use that infrastructure to compete with the incumbents, a group largely consisting of the regional Bell carriers, or RBOCs.

However, that type of competition has proven to be difficult for the competitive carriers and WiMAX will help them overcome the costs and other difficulties that previous methods of competing created.

"The economics of the 'wireless local loop' will drive alternative carriers to leverage WiMAX technology, resulting in enhanced competition in the consumer voice market," David Willis, vice president with META Group's Infrastructure Strategies service, said in a statement.

Using WiMAX will enable the competitive carriers to reduce their capital expenses compared to piggybacking on the incumbents' infrastructures, the report said. It also will reduce operational costs and customer turnover, according to META Group.