Dell'Oro Group Forecasts Shift in Consumer Wireless LAN Market

Company Says that After 2006, Broadband Service Providers Drive Consumer Market; Stand-alone WLAN Sales Languish

WebKnowHow
Tuesday, August 8, 2006; 08:55 AM

In a newly released report, Dell'Oro Group forecasted that the consumer wireless LAN (WLAN) market is currently shifting from early adopters to the mass market and the transition is being enabled by broadband service providers. Until recently, consumers purchased WLAN equipment primarily through retail establishments. Sales were limited to consumers sophisticated enough to select and set up their own equipment. Increasingly consumers are receiving WLAN capabilities with their DSL or cable customer premises device.

"Broadband service providers increasingly view WLAN as a strategic way to distribute data and Voice over IP (VoIP) services throughout the home. With the advent of 802.11n, streaming high definition video to multiple devices is made possible, eliminating costly and complicated wiring setups," said Elmer Choy, analyst of Wireless LAN Research at Dell'Oro Group. "Shipments of Broadband CPE with embedded WLAN capabilities are rising at a rate of 40 percent compounded annually over the next five years, and will exceed the market for stand-alone wireless routers and access points by the end of 2007," added Choy.

The report also covers in-depth analysis of the Enterprise WLAN market. Enterprises will deploy WLAN for productivity, mobility, and security applications, and will be propelled in part by users seeking the same wireless capabilities in the office as they receive at home.

Dell'Oro Group provides research and analysis for component manufacturers, equipment vendors, and investment firms.