According to the market research and consulting firm Frost & Sullivan, introduction of mobility into the WiMAX roadmap, as well as expensive roll-out of 3G services across the globe has created concerns about WiMAX being a direct competitor to 3G.

This concern has prompted many to view the combination of 2.5G such as EDGE with WiMAX as a far less expensive and more attractive proposition compared to the 3G-deployment model.

The figures from a recent Frost & Sullivan analysis of the World Wi-Fi and WiMAX Chipsets Markets reveal that the revenue in the WiMAX chipsets industry totaled around $18 million in 2005 and are expected to reach $257.3 million by 2008.

However, according to Frost & Sullivan Research Analyst Vinoth Praveen, not all is lost for 3G yet.

"Despite some of the underlying theoretical cost benefits of WiMAX, 3G should not be written off. 3G has a considerable head start. It is well and truly present in most developed markets such as Europe and covers the majority of the population. In contrast, the development and deployment of WiMAX is still a long way. There is yet a degree of standardization to achieve in WiMAX, especially on the mobility front," said Praveen.

So, it may be slightly premature to pit WiMAX against 3G and view the two technologies as competitors. And as far as rolling out either of the two is concerned, there are many more factors associated with deployment than just the cost.