Austin, TX (July 11, 2005) – The substantial growth of the broadband industry in the last 18 months has helped spur speculation regarding the potential success of alternative broadband access methods like broadband powerline and fixed wireless access, such as WiMAX. With worldwide connections soaring past 150 million at the end of 2004, it is no wonder that operators are trying to find different ways to rapidly increase market penetration, especially in the potentially lucrative rural areas where DSL and cable have yet to reach. Some believe that broadband powerline access (BPL) is the answer to rural demand of broadband services.
In a new executive brief examining the market potential for BPL, IMS Research discusses the potential for broadband powerline in urban and rural areas alike. According to broadband analyst Melissa Yocom, “The biggest hurdle for broadband powerline will be achieving market share in DSL and cable modem saturated markets. The volume of BPL deployments will have to increase substantially during the next 12-18 months if this technology is going to gain any ground.”
With many BPL operators still working on trial deployments there’s a large chance the technology may not make it off the ground. Fixed wireless broadband access (i.e. WiMAX 802.16e), considered by many to be BPL’s direct competitor for the under-served rural market, has the potential of beating BPL to market, especially in the US where ratification of a universal BPL standard is still pending. However, if the power utility sector decides to enter the broadband market by either cooperation with independent BPL ISP’s or by offering their own Internet services, the technology could receive the necessary financial resources and branding needed to achieve a respectable portion of the broadband market.
About IMS Research
IMS Research is a specialist supplier of market research and consultancy services on global electronics markets. Information from IMS Research is used by major companies worldwide to assess market trends, solve marketing problems, and improve the efficiency of their businesses. IMS Research is an international company, selling in more than 35 countries around the world and is supported by headquarters in Wellingborough, UK and an office in Austin, Texas. IMS Research regularly publishes detailed research on digital consumer and broadband markets, including digital television, set-top boxes, and home networks.
For further information, please contact:
Anna Hunt, Research Director Digital Consumer & Broadband Research Group