Market Analysis: Trends
Trends likely to impact Araneo in the marketplace.
Several trends will impact the performance of Araneo in the marketplace.
The largest economic trend we would like to take advantage of is the decoupling of infrastructure from services provided seen to a great extent in the electricity market in New Zealand, and in the telecommunications markete in the world outside of New Zealand. This follows closely the tendancy for businesses to outsource non-core functions to companies better suited to delivering the best product. To be a strong provider specializing in wireless will be an enviable position as companies both outsource the implementation and operation of their communications links
E-commerce and the Internet are a trend that needs little explanation. New Zealand is currently near the bottom of the OECD in terms of broadband uptake, ranking 26th of 30 in the 2003 OECD Communications Outlook in terms of penetration and having higher broadband costs than all but 2 countries in the survey. As costs come down due to market pressure, regulation, and entry of competiting technologies for the delivery of broadband, penetration will grow rapidly, benefitting all technologies.
The idea of on-demand media, brought about by the introduction of the Internet in many places in the world and services such as pay-per-view on cable and satellite television will serve to expand the market for broadband. Wireless is in a unique position as almost all radio and television in New Zealand are delivered via RF - including traditional broadcast and satellite RF services. It is possible today to deploy low-cost IP based wireless devices which can be used to receive broadcast and on-demand audio and video at a quality higher than can be utilized by most home-user AV equipment.
Advances in wireless technology are the final trend which will have a major impact on Araneo. Adoption curves of technologies have been remarkably similar in the past hundred years, and such innovations as television, telephone, the microwave, VCRs, and CD players have all had predictable curves. Wireless has broken this paradigm and has been taken up much faster than any technologies in the past. Development of the actual technology has kept pace, and gives gains in performance matching the gains of CPU power (and in may ways closesly related to such gains). At the curent rate of development of wireless technologies, fixed wireless broadband will easily surpass the ability of copper DSL based networks to deliver services to consumers. While Araneo focus today on business deployments, the age of wireless routers on the rooftop of every consumer is not far in to the future.