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March 13, 2007  |  Email This Article   |  Print This Article

Irish customers abandon fixed lines and opt for WiMAX

DUBLIN (WiMAX Day). After WiMAX operator Irish Broadband increased its network capacity last year with a €25 million investment, it has not been lacking for new customers. The Dublin-based company recently reported that it had added significantly to its subscriber base which now counts some 40,000 total subscribers.

According to Orla Carroll, the company’s head of marketing, the majority of their new subscribers had recently moved into new apartments, and prefered only to have a wireless broadband connection instead of broadband plus a fixed-line telephone.

Dublin property agent Sherry FitzGerald reports selling or renting over 5,000 apartments each month in this tiny European capital, and its statistics show home-owners no longer wish to be tethered to the wall for telephone or Internet. “With mobile phones and wireless services like Irish Broadband, why would a customer wait for five weeks for Eircom [the incumbent telecom] to install a home phone,” said Gareth Connelly, a property specialist at Sherry FitzGerald.

A recent report by the market research firm Amárach Consulting notes that 24% of new broadband subscribers that do not have a fixed line “previously had a subscription at their current address.” Moreover, 67% of Internet use in Ireland originates from the home, where 14% of total broadband use is now through wireless services such as Irish Broadband.

VoIP leads the charge
This recent trend is proving a boon for Irish Broadband. With its standard 512kbps and 2Mb packages, Irish Broadband found that many customers enjoy the convenience of using VoIP services, and while some consumers may not be ready to completely abandon their home phones, having the option of VoIP available from the wireless service is still comforting.

With access speeds equal to or better than competing DSL services in Ireland, Irish Broadband appears to be mining a rich market.

According to a recent report from the Commission for Communications Regulation (ComReg) in Ireland, ten percent of broadband subscribers now use VoIP. The report from Amárach noted in a recent survey that 45% of respondents used VoIP services because they wanted to make cheaper calls, and 17% used VoIP because they wanted to try new a technology or because their friends use it.

The explosive use of VoIP is not unique to Ireland. As an alternative to fixed line communications, VoIP is enjoying the same growth in the rest of the world. However, its use at Irish Broadband is an indication that VoIP will be one of the many “killer apps” that will speed the growth of WiMAX, especially when bundled as a triple-play service.