Monday, March 10, 2008

WiMAX Segmentation

One of the unresolved questions about WiMAX networks in the U.S. market is whether a sizable new business can be created around devices other than cell phones and smart phones.

And there is at least some reason to believe an opportunity exists, though pricing might be an issue.

Analysts at Compete Inc. recently asked consumers shopping online for consumer electronics devices about their interest in connecting devices to the Internet.

More than 50 percent of laptop and GPS shoppers were very interested in devices that enable enhanced connectivity using an open access network.

A follow-up question revealed that consumers are also willing to pay for this connectivity, with about 25 percent willing to pay over $50 at the time of purchase to include this feature, Compete suggests.

Recurring costs are the bigger issue, though. It isn't clear how many users will be happy to pay recurring connection fees if the option to use their in-home Wi-Fi networks is available for no incremental cost. Up to this point, no matter what they might say as part of a poll, few camera users have proven willing to spend money for network services.

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