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Any Chance for W-ASPs in this Changing Economy?
URL(s): www.instat.com
SCOTTSDALE, Ariz., Oct. 16, 2001--Despite the continued growth of wireless services usage in
2001, the luster of mobile access is not powerful enough to give the Wireless-enabled Application Service Provider (W-ASP)
industry a significant jump-start in 2001, according to Cahners In-Stat Group (http://www.instat.com).
The research firm reports that the limited bandwidth of today's public wireless networks and the less-than-stellar usability of
wireless access devices for accessing applications, like WAP-enabled phones and Palmtops, relegate wireless-accessible
hosted applications to remain in a few niches, primarily in vertical-specific business markets.
"The future of W-ASPs rest keenly on the growth and evolution of the wireless Internet and the comfort-level of U.S.
business professionals using the Internet to interface with various applications.
"Though this market has a great deal of promise in the long-term, growth for these hosted services in U.S. business and
consumer markets is expected to be quite moderate, particularly for the next 2-3 years," said Kneko Burney, a director at
In-Stat.
Burney believes the current economic climate combined with the awkward nature of wireless access devices for using
applications, as well as the fairly non-strategic nature of wireless-accessible hosted applications, will lead to gradual adoption
over the next 5 to 7 years.
In-Stat estimates that W-ASPs currently support roughly 230,000 U.S. subscribers in 2001, primarily U.S. business
end-users in firms with more than 100 employees. This is up slightly from 226,000 subscribers in 2000.
In-Stat also found that:
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More than 90% of current W-ASP subscribers reside in the business markets.
--
The overwhelming majority of subscribers work for firms with more than 100 employees, where roughly 68% of these
work for enterprise businesses, estimated at more than 140,000 subscribers in 2001.
--
W-ASPs provision the infrastructure and services to deliver applications over the wireless network for a fee. These
providers could also make these applications accessible via the public "wired" Internet in tandem with wireless networks.
The report, "W-ASPs -- How Potent is Your Sting" (No. OC0105CS) provides a detailed analysis of the W-ASP
marketplace in the United States. It includes 5-year forecasts for subscribers and subscription revenues, segmenting them by
consumer and across size of business.
To purchase this report, or for more information, visit http://www.instat.com/catalog/cat-oc.htm#oc0105cs or contact Chris
Kissel at 480/609-4531; ckissel@instat.com. This report is priced at $3,495.
Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications research from vendor to
end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make
more informed business decisions.
In-Stat is a unit of Cahners Business Information (http://www.cahners.com), a leading provider of critical information and
marketing solutions to business professionals and a member of the Reed Elsevier plc group.
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