Analysts See Russian Wireless Broadband Market Up 61% in Jan-Jun

MOSCOW, Aug 28 (Prime-Tass) -- The Russian wireless broadband market rose 61% on the year to U.S. $33 million in January-June, iKS-Consulting research and consulting agency said in a report on Monday.

The agency attributed the jump to high demand for wireless Internet access, low development of wireline infrastructure and the emergence of new operators on the market.

The segment of wireless broadband Internet access accounted for less than 8% of the wireless Internet access market and about 5% of the entire Internet access market in January-June, the agency said.

iKS-Consulting estimated wireless broadband providers to have 35,000 users as of July 1, up 8,000 users since the beginning of the year.

The agency noted that the number of households using combined broadband technologies amounted to about 100,000. Combined technologies are when providers offer wireless technologies in the "last mile" and wireline technologies in the "last meter," the agency said.

Among the market leaders, the agency named Tascom, or Taskom, with a 7% share and Flex and Enforta with a 6% share each.

Most wireless broadband market players use RadioEthernet, or IEEE 802.11, wireless technology, while the majority of the largest companies plan to soon start, or have already started, constructing networks using WiMAX technology, iKS-Consulting said, adding that as of July 1 pre-WiMAX and WiMAX technology accounted for only about 5% of the wireless broadband market. The agency expects the share to increase to 20% in 2007.

iKS-Consulting projected the revenue of wireless broadband providers to increase more than 60% on the year in 2006 to $80 million.

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Posted to the site on 28th August 2006