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Consumers Break Shackles Imposed by a Wired World.


Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--May 15, 2000

The Wireless LAN A local area network that transmits over the air typically in the 2.4 GHz or 5 GHz unlicensed frequency band. It does not require line of sight between sender and receiver. Wireless base stations (access points) are wired to an Ethernet network and transmit a radio frequency over an area  market will experience rapid growth over the next several years, generating $785 million of revenue in 2004, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 Cahners In-Stat Group, a high-tech market research firm.

The market will be boosted by increased shipments of WLAN See wireless LAN.

WLAN - wireless local area network
 chip-sets and WLAN IC components, which will grow at an average yearly rate of 41 percent and 10 percent respectively. In-Stat predicts that growth in the IC component market will be stinted by an industry-wide consolidation of ICs, resulting in an overall drop in the price of WLAN-enabling NIC (1) (Network Interface Card) See network adapter. See also InterNIC.

(2) (New Internet Computer) An earlier Linux-based computer from The New Internet Computer Company (NICC), Palo Alto, CA.
 cards and laptop embedded chip-sets.

Lower prices are making WLAN connectivity more accessible to consumers, driving up demand for WLAN devices. In turn, more manufacturers are entering the market, increasing competition and supply, and ultimately causing prices to drop even lower.

Price is not the only factor that will bolster WLAN's appeal to the consumer. The emergence of new standards and competing technologies will allow WLAN devices to transfer data at ever-increasing speeds, allowing the technology to be used for a larger variety of products than before.

In addition, IT personnel will be attracted to the technology and its ability to connect employees without running cables.

According to Allen Nogee, senior analyst for In-Stat's Wireless Service, "There is another force that is driving the growth of WLANs that is not easily measured: the desire to break free of the shackles of a wired world and have the freedom to roam The freedom to roam, or everyman's right is a term describing the general public's right to access certain public or privately owned land for recreation and exercise. The term is sometimes called right of public access to the wilderness or the right to roam.  about an enterprise without wires."

Despite this, Nogee believes that there are still some obstacles within the market that need to be overcome as incompatibility between various protocols and interference from other wireless devices are posing significant threats to the growth of the market.

Nogee stated that "if WLANs are to be a viable option for the enterprise, they must overcome these problems and compete with the growing number of wireless data alternatives such as 3G wireless phones."

In-Stat also finds:

-- Intersil is currently the dominant force in WLAN chip-set

marketplace with their PRISM I and PRISM II chip-sets holding

the majority of market share.

-- The WLAN IC market will peak in 2002 with just over 33.9

million units shipped and growth is expected to taper off Verb 1. taper off - end weakly; "The music just petered out--there was no proper ending"
fizzle, fizzle out, peter out

discontinue - come to or be at an end; "the support from our sponsoring agency will discontinue after March 31"

2.
 as

more components become consolidated.

The report, "Wireless LAN IC Markets: Untethering the Enterprise" (No. WT0001WL) provides a WLAN market forecast and overviews of WLAN technologies, standards and the various interest groups involved.

The report also breaks down the components that comprise WLANs and presents vendor and component profiles for companies such as AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. , Agilent Technologies This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Lucent, Philips, OKI, Intersil, Atmel Corp., and AMI.

To purchase this report or for more information, please call Matt Woods at 617/630-2139; mwoods@instat.com or visit http://www.instat.com/catalog/cat-wt.htm. The report price is $2995.

Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications Transmitting text, voice and video in binary form. See 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.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:May 15, 2000
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