By Craig Kuhl, Contributing Editor G rowing concern over DSL distance limitations along with the quality of its connections, and nagging questions about provisioning times and lack of availability for cable modem service, are helping to elevate the fixed wireless business into an appealing segment of the communications space. Lower capital costs and sound economies of scale are also driving the fixed wireless business, and with a shrinking capital market coupled with recent cutbacks by DSL providers across the board, fixed wireless' future looks even brighter.
Recent studies seem to bear out the bullish mentality growing within the fixed wireless industry.
Revenues from the fixed wireless business, he insists, will follow the company's small market business strategy. There's a pent-up demand among consumers and small businesses for these services and an underserved market. Most of the fixed wireless companies are serving the niche second and third-tier markets, and the end user doesn't care where he gets his connectivity, so these service providers will offer all they can in wireless services like Internet, DSL and cable, and wireless will be a significant platform of that business. Much of a fixed wireless company's success could hinge on its access to capital and funding sources, two areas which aren't exactly on fire. With the recent DSL provider stock fallout, investors are skittish about DSL's ability to turn a profit and its capital-intensive nature.