The WiMAX market in India is on pace to total 21 million subscribers by 2014, according to a study by Maravedis and Tonse Telecom. According to the report, steady CPE price reduction significantly impacted the potential ARPU, favorably changing the market perspective. The analysts estimate that as many as 12,000 base stations and 500,000 CPEs will be sold into India in the next 12 months.

“Companies like Telsima reduced the CPE price by 50% as early as Q2-2007. Consequently, carriers like Reliance, started commercial services in Bangalore and has RFPs on the way, but there are more large-scale deployments to come,” said Adlane Fellah, CEO of Maravedis.

“Operators are unwilling to wait -- 2008 may become the ‘Year of Wireless Broadband’ in India and fulfill the expectations anticipated in 2007,” said Sridhar Pai, co-author of the report and founder of Tonse Telecom.

Given the bulk discounts expected by operators, the CPE/BS for 2008 may reach $50 to $120 million. A substantial jump over the previous year and could be just the beginning of what might become one of the world’s top three WiMAX markets.

Additional research highlights from this study:

• WiMAX-enabled notebooks and handheld device shipments will reach 14 million units in 2014.
• WiMAX-enabled stand-alone CPE shipments will peak at 3.6 million units in 2012.
• By 2014, approximately 66% of WiMAX subscribers will be using 802.16-2005 while 802.16-2004 will continue to be driven by large corporations and, to a lesser extent, by SME customers.
• India is expected to see the costs driven down faster than in any other market.

About this study

The Maravedis and Tonse Telecom report,“INDIA Wireless Broadband and WiMAX Market Analysis and Forecasts 2007-2014 (Second Editioin)”, provides a detailed review of regulatory challenges and overall wireless/WiMAX market trends in India.

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