| The past 18 months have seen a significant | | | | chance but its window of opportunity is closing. |
| development in the use of mobile and wireless as | | | | Although wireless broadband in Australia has |
| an Internet connection technology in Australia. This | | | | continued to register impressive growth, |
| space was previously dominated by wireless | | | | expanding 68% in 2006, the user base remains |
| broadband providers, such as Unwired Australia | | | | small and coverage limited to major capital cities. |
| and Personal Broadband Australia offering | | | | Start-up wireless broadband service providers, |
| pre-WiMAX solutions. However, the competitive | | | | such as Unwired Australia, BigAir and Personal |
| dynamics changed dramatically in 2006 after 3G | | | | Broadband Australia, which operate proprietary |
| services became available from all four mobile | | | | networks, continue to face a challenging task of |
| operators, which was further accelerated by the | | | | having to expand their coverage and recruit |
| introduction of HSDPA or 3.5G services towards | | | | customers quickly while maintaining profitability. |
| the end of 2006 and at the beginning of 2007. | | | | Many of them are also faced with the challenge |
| For the first time in 2006, the number of mobile | | | | of raising capital at the same time. |
| broadband users - those using cellular-based 3G | | | | Some good news is afoot as the long-awaited |
| 3.5G for Internet connection - surpassed wireless | | | | standards-based WiMAX is expected to debut in |
| broadband (pre-WiMAX) users and given current | | | | the first half of 2008, which should boost market |
| market conditions, Telsyte expects mobile | | | | interest in wireless broadband. Standardisation |
| broadband users to outnumber their wireless | | | | should also translate into lower capex and opex |
| broadband counterparts by two to one in five | | | | for operators and cheaper CPEs for customers. |
| years' time. | | | | With the introduction of WiMAX delayed for |
| Combined, mobile and wireless broadband users | | | | almost two years and the rapid HSDPA progress |
| will make up 9% of all broadband users in | | | | made by mobile operators, WiMAX's battle against |
| Australia in 2007. By 2011, more than one in five | | | | cellular-based 3/3.5G to become the wireless |
| Australian broadband users will rely on either | | | | broadband technology of choice is becoming more |
| cellular-based or WiMAX-based technology for | | | | difficult. Telsyte believes WiMAX has an 18-month |
| their high-speed Internet connection. | | | | window of opportunity until the end of 2008 to |
| Delays in the commercialisation of | | | | prove itself as a viable business or risk going |
| standards-based WiMAX offerings are slowing | | | | down the path of Australia's WiFi hotspots, which |
| down the growth of WiMAX in Australia. That has | | | | have essentially become free services in selected |
| also been exacerbated by the aggressive 3G/3.5G | | | | locations like airport and hotel lounges or are being |
| push by the established mobile operators, with | | | | made free by various local and state |
| much deeper pockets. | | | | governments. |
| Telsyte believes that WiMAX still has a good | | | | |