CAMBRIDGE, Mass.-New Local Multipoint Distribution Services operators are expected to earn $6.5 billion by 2007, according to “LMDS Buildout Strategies: A Broadband Wireless Market Research Report,” a recently released report from Pioneer Consulting.
About 75 percent of the projected revenues are expected to be generated by businesses with fewer than 10 employees-the result of a large unmet demand for low-cost, high-speed access services, said Pioneer.
The study concluded the large-business market would remain comparatively small, not because of a lack in demand, but because of large companies’ ability to pay for fiber optic-based systems and services.
By the end of this year, LMDS operators offering broadband wireless services are expected to bring in some $96 million in revenues, with the small-business market accounting for nearly $57 million.
“Fiber optics is the primary transmission medium for broadband connectivity today,” said Roberta Woods, director of wireless market research for Pioneer. “However, of the estimated 4.6 million commercial buildings in the United States, 99 percent are not served by fiber,” she continued.
