Product Testing Issues, Economy Impacted Taiwan's WiMAX Industry in Q4 '08

A new report has found that Taiwanese WiMAX CPE (Customer Premises Equipment) shipment volume has been estimated at 261,500 units in the fourth quarter of 2008, up 4.2% compared to the previous quarter. Since ASP (Average Selling Price) saw a slight decline, Taiwanese WiMAX CPE shipment value in the fourth quarter of 2008 grew approximately 3.0% to US$38 million.

The statistics come from the ITIS project - a project initiated by Taiwan's Ministry of Economic Affairs and conducted by Taipei-based MIC.

Looking at WiMAX CPE shipments by function, indoor CPE remained the main shipment and saw continued growth in the fourth quarter, with a shipment volume of about 150,700 units, accounting for 57.6% of overall shipment. Regarding WiMAX CPE shipments by technology, shipment volume of 802.16d products remained at a relatively stable level, while growth momentum mainly came from 802.16e product shipments, which accounted for approximately 64.8% of the total shipment volume in the fourth quarter of 2008. Nevertheless, the growth of 802.16e product shipment volume did not reach the level forecasted by the industry.

Aside from specification certification and interoperability testing, WiMAX products are subject to network access testing, too. As Taiwanese makers lacked experience related to CO (Central Office) networks, this testing process was prolonged, affecting the shipment of 802.16e products. In addition, the economic downturn affected WiMAX carriers' network deployment, which also bore on WiMAX CPE shipments in the fourth quarter.

In the first quarter of 2009, affected by the current economic situation, Taiwanese WiMAX CPE makers are expected to see their shipment volume inch down. WiMAX CPE shipments are projected to pick up in the second quarter on demand growth stimulated by the commencement of WiMAX services in various regions. Nevertheless, the process of network access testing is expected to be a key variable in Taiwanese WiMAX CPE makers' shipment performance. It is forecasted that Taiwanese WiMAX CPE shipment volume will reach approximately 231,000 units in the first quarter of 2009 and 248,000 units in the second quarter of 2009.

Posted to the site on 19th February 2009