While WiMAX is touted as a technology that can be applied in both developed and developing markets, industry players say the real potential for WiMAX is in the developing world.
Conrad Labonte, Nortel's wireless solutions director for ASEAN and Pakistan, said the company believes the single biggest opportunity for WiMAX is in emerging markets because of its ability to provide a cost-effective infrastructure.
'WiMAX is much more about data applications, and in these nations there are huge populations that still don't have DSL connections, while wireless technologies like 3G and HSDPA are too expensive and not yet available,' he said.
Indeed countries like India, Sri Lanka and Pakistan are pinning their hopes on WiMAX to provide service to underserved areas, while the likes of Malaysia and Thailand also see the technology as a shortcut to help them provide broadband connectivity to rural and remote areas.
In contrast, Labonte said the business case in developed markets would be weak because of the availability of different choices in access technologies, citing Hong Kong as an example.
However, in some developed countries like Australia and Canada, WiMAX can still find its place because of the huge geographical coverage that is needed and a lack of DSL in some parts. Singapore would also provide a good opportunity for WiMAX, he claimed, as there is not enough competition in the country's broadband market.
'Large ISPs will use WiMAX to bypass incumbent carriers like SingTel and get control of their own customers,' he predicted.