http://muniwireless.com/municipal/reports/841
Muniwireless market sizing report now available
U.S. cities, towns and counties will spend nearly $700 million over
the next three years to build municipal-owned wireless broadband
networks. Moreover, the U.S. market will enjoy a compound annual
growth rate of 134 percent between 2004 and 2007 and will exceed
$400 million by 2007 as more municipalities, including larger
cities like San Francisco and Portland, embark on wireless
initiatives.
These statistics, together with other findings, are detailed in my
new report: 2005 Municipal Wireless State of the Market Report. I
researched and wrote it in collaboration with Microcast
Communications.
Since I began following this industry more than two years ago,
everyone has struggled to get a handle on just how big this market
really is, and what the market opportunity represents for companies
building and deploying wireless networks for municipalities. The
study is the first to quantify the market’s size and growth
potential, and leaves little doubt: this is a market that has
quickly gained critical mass, and is destined to grow at rapid
rates for the foreseeable future — even with the obvious questions
surrounding the technical and political challenges.
Among other key findings of the study:
Growth is taking place with equal vigor in large and small
municipalities alike. Growth will more than double annually for the
next three years, both in cities with populations of more than
500,000 people, and those with less than 100,000 residents. More
than 60% of total 2005 municipal wireless network spending is being
done by large cities, a figure expected to hold fairly constant in
the next two years, as more and more large cities issue Requests
for Proposals (RFPs) for their wide-area wireless initiatives.
The top application for current municipal wireless networks is
public safety (police, fire, emergency services). Just over half of
U.S. municipalities that have deployed municipal wireless have done
so for public safety.
Many municipalities are starting their “unwiring” efforts in an
attempt to reduce skyrocketing telecommunications costs. But small
municipalities often are driven to offer inexpensive broadband
access to residents and businesses that are typically underserved
by the large incumbent communications carriers.
Since the majority of municipal wireless spending will focus on
infrastructure build-out for the next several years, product
vendors will be well-positioned to capitalize on demand for their
products. However, that infrastructure is deployed, applications
developers are going to be the most sought-after technology partners.
Adoption of important industry standards, such as the next
generation of Wi-Fi (802.11s) and WiMax, could spur even higher
growth rates for the market, should those standards be widely
adopted by technology vendors early next year.
Still unclear is how dramatic will be the market impact of major
technology players such as Microsoft, Cisco, Google and Intel.
The study is based upon in-depth, personal interviews with
municipal IT executives, elected officials, and municipal
department heads. We received detailed statistical information
about past, current and anticipated future spending for all-sized
U.S. municipalities. The interviews were combined with U.S. census
data to create a comprehensive “market map” representing the total
available market for the years 2004 through 2007.
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