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IN-BUILDING WIRELESS MARKET FORECASTED AT $815 MILLION IN REVENUE AND 1.2 MILLION HANDSETS IN 2003 October 12, 1999 - In-Building Wireless PARSIPPANY, NJ, (October 12, 1999) -- A recent report from PBI Media-InfoTech projects the U.S. in-building wireless voice market will grow at an average annual growth rate of 34 percent to reach $815 million in revenue by 2003 up from $191 million in 1998. The report also shows handset shipments growing from 169,300 in 1998 to 1.2 million in 2003. According to the Parsippany, NJ-based research and consulting firm, two new developments are driving this forecasted increase. The rapid growth of wireless service subscribers has stimulated the need for mobility products that can be used both in and out of the office. Moreover, in-building wireless voice products will be able to piggyback on the growing number of wireless LAN products to deliver voice services along with data traffic. In-building wireless systems allow workers to utilize portable phones within a building or campus and still receive all the functionality of a corporate PBX or Key/Hybrid phone system. In-building wireless - because workers can move freely throughout their work environment receiving and placing calls -- is especially attractive to the education, healthcare, retail, and manufacturing sectors that have highly mobile employees. AG Communication Systems (AGCS), a subsidiary of Lucent Technologies (NYSE: LU), reported their first shipments of their new ROAMEO ® Digital Wireless Office Telephone System that operates on the licensed 1900 MHz band. This product allows workers to make and receive calls with their cell phone and utilize all the features of their office phones. AGCS' ROAMEO ® Digital Wireless Office Telephone System that operates at 800 MHz entered general availability in the third quarter of 1999. Licensed band products will make workers more productive and efficient by increasing their availability and reducing the number of missed calls. Ericsson (NASDAQ: ERICY) and Hughes Network Systems (NYSE:GMH) also have licensed band in-building wireless products that operate at 800 MHz and 1900 MHz. Ericsson's product starting shipping in the third quarter of 1999 and Hughes' product should be generally available by the fourth quarter of 1999. "With strong backing from AT&T Wireless (NYSE:T) and BellSouth Cellular (NYSE:BLS) and several other cellular carriers, licensed band products should experience strong sales growth in the next few years" said PBI Media-InfoTech analyst, Shelly Tyler. PBI Media-InfoTech projects licensed band products will represent 23 percent of in-building wireless handset shipments and 27 percent of total revenue in 2003. In other developments, SpectraLink Corporation (NASDAQ:SLNK) and Symbol Technologies Inc. (NYSE:SBL) reported their first shipments of their new 2.4 GHz wireless phone systems that combine voice-over-IP and wireless LAN technologies. These products enable mobile employees to make and receive telephone calls over a shared wireless infrastructure. Both of these products are compliant to the IEEE 802.11 standard for wireless LANs. SpectraLink Corporation (NASDAQ:SLNK) has formed partnerships with wireless LAN vendors including: Aironet Wireless Communications (NASDAQ:AIRO), Breezecom, Intermec Technologies Corp., Proxim Inc. (NASDAQ:PROX), Teklogix and Telxon Corp. (NASDAQ:TLXN) to provide their access points while Symbol uses their own Spectrum24 wireless LAN access points. PBI Media-InfoTech projects that 2.4 GHz banded products will represent 29 percent of in-building wireless handset shipments and 27 percent of revenue, assuming wireless LAN infrastructure is already installed, by 2003. Many more vendors will develop products that combine voice-over-IP and wireless LAN technologies in the upcoming year. Already, Symbol Technologies Inc. (NYSE:SBL) has made a series of recent announcements regarding partnership agreements with Mitel Corporation (NYSE:MLT), Ericsson (NASDAQ: ERICY) and Nortel Networks (NYSE:NT) to develop a converged enterprise wireless voice over IP and wireless data solution. Lucent Technologies (NYSE: LU) also announced they are conducting voice of IP market trials with their WaveLAN® wireless local area network. PBI Media-InfoTech is a worldwide consulting firm specializing in strategic solutions for corporate clients in the telecommunications and information technologies industries. The firm is part of PBI Media, a division of Phillips International Inc. of Potomac, MD, which has 1,250 employees and total revenues of $350 million. |
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