Wireless no match for fixed line: Budde

In his latest market report, Budde said that wireless broadband is inviting users' attention as demands for more bandwidth and competition increase.

Budde predicts that a fully developed "wireless broadband communications medium" could provide benefits of cheaper access, faster implementation and flexible configuration, stressing that there are many technologies within the wireless realm.

"There is not one technology but at least a dozen. Each of these technologies offers very specific benefits which could make it an ideal niche market application," Budde stated in the report.

However, he adds that the interconnected nature of the telecommunications industry prevents customers from adopting a new system that few others would be using at this stage.

"There are already more wireless technologies that are obsolete than the ones that have survived," he said.

Budde maintains that wireless will never become an able competitor to the fixed line network, as he said it will never match the "reliability, quality and robustness" that a landline can offer.

"This means that when there is an option, fixed solutions are often preferred," he adds.

Yet Budde upholds that there is an opportunity for wireless to compete in some areas of the broadband market, as he said at least one third of the fixed line network is currently unsuitable to carry broadband, creating a gap for wireless to fill.

"The reality of wireless broadband for at least the foreseeable future is, that it is better suited for niche market deployment," said Budde; a prospect that, he said, looks very positive.

"Companies that are able to harness the customer benefits of these technologies and who are building the right customer bases around them will be very successful."

Budde said despite his optimistic view for wireless broadband, he fails to see a "good business case" for hotspot based technology outside of the hotel, airport, campus and in-house niche markets.

"Because of its limitations, Wi-Fi has never had the potential to venture into more lucrative models," he said.

However, Budde said the market failure of Wi-Fi triggered Intel and other vendors to develop the next stage of the technology known as Wi-Max (802.16), which presents great possibilities for users.

"You simply hook a small device on the outside of your house and your broadband connection is up and running," he said. "With a potential range of 50Km, WiMax could be particularly successful in regional areas, and this where several telcos around the world are trialing these services."

"WiMax is also emerging as the frontrunner for a global standard for wireless broadband. All very good signs indeed."