Worldwide subscribers to fixed wireless data and video services will total 14 million by 2004, according to In-Stat. But even with this projected surge in subscribers, fixed wireless will lag behind DSL and cable modem services. Originally designed as an alternative to wireline cable TV, fixed wireless is now primarily positioned to provide high-speed Internet services to businesses and consumers. Modular architecture allows for incremental increases in coverage.
Service providers can effectively target specific areas for service.
Unlike cable, fixed wireless requires neither easements to operate nor a franchise license. Tall buildings, trees, and foul weather can degrade fixed wireless signals. Because fixed wireless cells are small and their range limited, providers will likely only offer service to more densely populated areas. The recent collapse of the WorldCom-Sprint merger was a blow to the industry. It stopped much needed industry consolidation and blocked an opportunity to achieve economies of scale that are necessary to compete with other broadband technologies.