According to MIC (Market Intelligence Center), an ICT industry research institute based in Taipei, 16e Wave 1 and Wave 2 products are expected to boost the adoption of WiMAX (Worldwide Interoperability for Microwave Access) technology by telecom operators in 2008. For Taiwanese WiMAX CPE (Customer Premises Equipment) makers it will be crucial to complete the IOT (Interoperability Testing) with the leading base station vendors in time, so as to make it onto the recommended vendor list for telecom operators. It is forecasted that Taiwanese WiMAX CPE shipment volume will reach about 763,000 units in the first half of 2008, growing approximately 500% year-on-year.
For Taiwanese WiMAX CPE makers, 2007 saw the commencement of product maturation and strong shipment growth. In the first half of 2007, most Taiwanese makers focused on the IOT and some began small-scale shipments. In the second half, some leading Taiwanese makers passed the IOT and entered collaboration with international telecoms. At the same time, shipment volume also saw substantial growth. For the full-year 2007, Taiwanese WiMAX CPE shipment volume reached 452,000 units, representing a worldwide market share of nearly 30%.
Owing to telecom clients' network deployment, gradual commercialization of services, and timely rollout of base stations catering to international telecom equipment vendors' network construction, Taiwanese WiMAX CPE shipment volume reached 210,400 units in the fourth quarter of 2007, growing 81.7% sequentially. Shipment value reached US$39.4 million, representing a sequential growth rate of 76.7%. Of the overall shipment volume, the four leading makers had a combined share of nearly 90%, while other makers were still conducting product sampling or adjusting the compatibility between products and base stations.
Looking at ASP (Average Selling Price) development of WiMAX CPE in the fourth quarter, although the prices of MAC/BB chips - which account for the largest share of material costs - dropped, ASP of Taiwanese WiMAX CPE merely dipped 3% sequentially in the fourth quarter of 2007. The slight decline in price could be attributed to the fact that most CPE makers did not land enough orders to create economies of scale so that peripheral makers might adjust downwards the prices of components. Moreover, most CPE makers were reluctant to cut prices as they had high expectations for the future development of WiMAX CPE.
More information can be found in the following MIC report: The Taiwanese WiMAX Industry, 1Q 2008
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About MIC
Market Intelligence Center, based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english