TeleGeography’s latest bandwidth forecast updates predict strong demand growth on subsea routes throughout Asia and the Pacific Ocean. Driven by rapidly expanding Internet backbones, overall bandwidth demand should grow fast enough to offset the effect of price declines on revenues until 2009. From 2009-2012, however, revenues could flatten and possibly decline as demand slows and providers migrate to higher capacity circuits and wavelengths, which have lower unit costs.

This year will mark the first time that intra-Asian bandwidth usage has significantly outpaced trans-Pacific capacity. Consumer behavior and the growth of Asian data centers are at the core of this shift. Throughout Asia today, more content (HTML, streaming video/audio, downloadable files) is stored regionally creating less of a need to traverse the Pacific to access content. The following graphs highlight these overall supply and demand trends:

According to TeleGeography’s new Global Bandwidth Forecast Service, which covers routes and regions around the world, international bandwidth demand is projected to grow 42 percent in 2006. Between 2005 and 2012, international bandwidth demand is expected to slow to a compounded annual rate of 27 percent.

To learn more about the quarterly Global Bandwidth Forecast Service, please visit our web site or contact your account manager:

http://www.telegeography.com/products/gbfs/

As of July 2006, WiMAX service had been trialed in more than 50 countries worldwide. At least twelve countries already have commercially deployed WiMAX service. Many more markets had WiMAX service in early deployment or planning stages.

TeleGeography’s new WiMAX Market Tracking Service provides a comprehensive view on worldwide WiMAX deployments, licensing, trials, equipment contracts, and coverage plans by country. Each quarter, subscribers receive a concise market review and an updated spreadsheet following hundreds of WiMAX deployments around the world.

Excerpts from our first WiMAX Market Tracker newsletter are attached below. To learn more about the service and to request a free sample, please visit our web site at:

http://www.telegeography.com/products/wimax/

You can also send queries or request more information by replying to this email or contacting your regional account manager.

TeleGeography’s WiMAX Market Tracker

Volume 1, July 2006

FEATURE
Intel Sets up WiMAX Ventures with Orascom and Enertel

Intel Capital, the venture capital investment arm of Intel Corporation, has announced agreements to form WiMAX joint ventures with two firms, Egypt’s Orascom Telecom and Enertel Holding of the Netherlands. Intel will set up Orascom Telecom WiMAX Limited with Orascom Telecom and Worldmax with Enertel. Both investments are expected to be completed shortly, following the fulfilment of certain conditions and the receipt of various approvals. The telco partners will be the majority shareholders, with Intel as the lead investor…

NETWORK NEWS
Intel and Motorola have invested a total of USD900 million in the US-based wireless broadband operator Clearwire. Intel has agreed to pump USD600 million into the firm which currently offers services using proprietary technology developed by its subsidiary NextNet Wireless. Motorola, meanwhile, will pay USD300 million to acquire NextNet and take an unspecified stake in Clearwire.

Russia’s Start Telecom says it plans to begin the rollout of a WiMAX wireless broadband network which will cover five cities by the end of the year. The firm’s CEO, Pavel Kaplunov, told Vedemosti newspaper that the telco will be spending around USD500,000 in each city…

MARKET ANALYSIS
Europe’s First Rollouts

2006 is set to be the year that WiMAX technology emerges from the sidelines and stakes its place as a serious contender in the broadband marketplace. Late 2005 saw the first commercial launches of fixed WiMAX systems and more are following as 2006 progresses. There has of course been much interest in the technology, with at least 175 trial deployments worldwide by April this year, but it is now that 16d WiMAX is becoming a ‘real’ technology. The launch of self-install indoor subscriber units in the second half of this year can only improve its prospects…

INDUSTRY INTERVIEW
Alvarion: Wired for Wireless

Alvarion was established in Israel 13 years ago under the name Breezecom, and the Breeze motif lives on through the vendor’s flagship wireless broadband product range, BreezeMAX. Having always been involved in the wireless networking sector, the firm has built itself a significant presence in the broadband market, expanding out of the wireless local loop sector to release its first pre-WiMAX gear in May 2004. By the end of the following year the firm was claiming around 30% of the overall wireless broadband equipment market and 80% of the WiMAX sector, a market which it estimates is worth between USD10 million and USD20 million now but will grow into a USD10 billion industry with the advent of mobile solutions…

WIMAX ARENA: MARKET DEVELOPMENTS

June
1 Malaysia: NasionCom planning USD55 million nationwide network
1 Russia: Start Telecom says it will launch in five cities by year-end
5 Russia: Peterstar plans Kaliningrad network for late-06/early-07
3 Bermuda: North Rock announces plans to launch WiMAX in 2H-06
6 Russia: Sibirtelecom unveils plans to trial WiMAX in three cities by end-06
10 Brazil: City of Porto Alegre plans to roll out its own WiMAX network
14 Cyprus: OmniGlobe orders WiMAX gear from Proxim
14 Canada: Sogetel planning 4,300 square km network in Quebec
15 Vietnam: VDC to begin trials in Jul-06
19 Poland: PTC threatened with losing its licence if it fails to deploy networks
20 Ukraine: Government invites bids for WiMAX licences in the 5.8GHz band
21 Russia: Enforta launches networks in 15 cities
22 World: Alvarion’s BreezeMAX equipment certified by WiMAX Forum…

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