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PBI Media STUDY: WIRELESS LAN INDUSTRY TO REACH REVENUE OF $1.7 BILLION IN 2004 May 18, 2000 - Wireless LAN PARSIPPANY, NJ May 18, 2000 - The drive for mobility has helped stimulate growth in the Wireless LAN (WLAN) industry according to a report from PBI Media (www.thephillipsgroup.net), a global research and consulting firm focused on the high-growth telecom and IT industries. According to the study, average annual industry growth over the next five years is expected to top 41 percent to achieve $1.7 billion in revenue in 2004, up from $300 million in 1999. The wireless LAN industry will grow due to recent strategic alliances between key wireless, networking, computer and WLAN leaders. Some of the key alliances include Cisco's (NASDAQ: CSCO) $800 million acquisition of Aironet (NASDAQ: AIRO) and Intel's $100 million investment in Symbol Technologies (NYSE: SBL), which included development agreements to create advanced wireless networking products. Boulder's SpectraLink (NASDAQ: SLNK) formed alliances with six wireless LAN vendors including Cisco (NASDAQ: CSCO), Proxim (NASDAQ: PROX), Telxon (NASDAQ: TLXN), Intermec, Teklogix and BreezeCOM (NASDAQ: BRZE). SpectraLink formed these relationships to enable their NetLink Wireless Telephone System to piggyback on their technology partners' wireless LAN access points to deliver mobile voice communications along with data traffic, according to Shelly Tyler, an analyst at PBI Media. Proxim (NASDAQ: PROX), also partnered with Siemens to develop integrated wireless voice and data network solutions for home and small-office users. IPOs for BreezeCOM (NASDAQ: BRZE) and Intersil (NASDAQ: ISIL) and MobileStar Network's $53 million of venture capital to launch its nationwide service to business travelers via mobile devices with WLAN infrastructure from Proxim (NASDAQ: PROX), indicates a new level of commitment to the industry, according to the study. Tyler went on to explain that the market also witnessed a major transformation when Apple began selling Lucent's (NYSE: LU) wireless LAN infrastructure in their laptop offerings. According to the study, market demand and industry collaboration will help the WLAN industry penetrate horizontal business applications. "Laptop manufacturers are incorporating WLAN cards, we've seen agreement on the IEEE 802.11 standard, faster speed products and price reductions, all of which will open the market." WLANs currently are widely used in vertical applications such as manufacturing, warehousing and distribution in conjunction with specialized terminals to extend wired LANs. The primary application that will lift WLAN purchases, said the study, is Voice over Internet Protocol (VoIP). "In our survey of enterprise decision-makers, nearly half of those without WLANs indicated that they would reconsider if offered a WLAN with VoIP capabilities," Tyler said. "Furthermore, many potential users indicated that they would accelerate their purchases if this feature were included. We see an immediate marketing opportunity for those vendors already offering this capability. Our surveys indicate that while interest is high, awareness that VoIP is already available is relatively low. Vendors need to get the word out." While 80 percent of enterprise network executives surveyed are aware of WLANs, many question the reliability of the technology. "The industry, however, considers WLAN reliability to be a non-issue - that the technology has solved any reliability concerns," Tyler explained. "Eliminating reliability fears will open opportunities immediately." To obtain a copy of the study contact PBI Media at www.thephillipsgroup.net or 973-884-0100. PBI Media (www.thephillipsgroup.net), a global professional services company with offices in Parsippany, N.J., London and Washington, D.C., specializes in market intelligence for the telecommunications and information technologies industries. In addition to conducting primary research studies, the company offers a comprehensive range of professional services, including custom consulting, InfoTracksm and TelecomTacticssm competitive intelligence products, professional conferences, market and competitor analyses and custom marketing programs. PBI Media is a division of Phillips International, Inc. (www.accessintel.com), a private company based in Potomac, Md., with annual sales of $350 million. One of the leading publishers in America, with a fast-growing Internet business, Phillips provides a wide variety of quality products and services for both consumer and business-to-business markets." |
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