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Rapid Acceptance of Wi-FI Suggests Significant Growth for WLAN Operators and IT Vendors
CEDAR KNOLLS, NJ, May 6, 2003 -- There is an almost unreal sense of excitement surrounding wireless local area networks (WLANs). Rapid consumer and enterprise acceptance of the relatively new 802.11b standard (also known as Wireless Fidelity or Wi-Fi) has caused component prices to tumble, further fueling growth, according to Probe Group.
Probe analyst David Chamberlain explained that along with the sale of components comes speculation that there are significant business opportunities for companies seeking to operate public networks using Wi-Fi. "These so-called public WLAN (PWLAN) hotspots, it is hoped, will attract revenue-generating laptop users to airport lounges, coffee shops and bookstores."
However, Chamberlain suggested there are several factors that appear to be natural caps to the revenue potential of PWLAN operators, including:
A limited total addressable market
Customer resistance to paying for multiple Internet access accounts
The high cost of backhaul
Probe believes wireless service provider networks-operated by the Vodafones, T-Mobiles and DoCoMos of the world-will be important, and perhaps dominant providers of PWLAN services. However, these carriers have unique technological needs and a unique set of assets that do not exist anywhere else, particularly in the areas of roaming, authentication and billing that are far different than those of the more traditional Internet service providers.
Probe also has no doubt that these service provider networks will be a substantial market for Wi-Fi network equipment. However, the IT/computing companies wishing to market their PWLAN solutions to these service provider networks must address all of these carrier issues or risk being left out of what could prove to be the largest PWLAN carrier segment altogether.
In the inaugural IT/Computing in Service Provider Networks report, "Wi-Fi Hotspots Operated by Wireless Service Providers," Probe analyzes the PWLAN market and identifies key strategies and products that IT and computing companies can use to service those networks. The report examines technical requirements and capabilities and discusses the PWLAN value chain, as well as its issues and limitations. It also details vendor offerings for wireless service provider networks (including Cisco Systems, IntelliNet Technologies, Juniper Networks, Nomadix, PCTEL, Tatara Systems, and Transat Technologies). A complete assessment of future market trends and opportunities is provided.
About Probe Group LLC
For over 26 years, Probe has leveraged its unique insights and extensive experience in both the traditional world of telecommunications and the burgeoning world of data and packet networks to offer clients sound counsel and realistic market forecasts. Probe has successfully maneuvered clients through changes in demand, demographic shifts, introduction and evolution of new technologies and platforms, industry structure transformations and financial market volatility. Probe provides clients with expert guidance through continuous research services, consulting projects, retainer programs and a variety of other direct analyst-access services.
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