Subject: [NEXTEL-1] 802.11 Shipments reached $411 million for the period up 6%

From: [email-masked]
Date: Wed, 14 May 2003 15:38:32 -0400

Worldwide 802.11 Market Grow One Percent in First Quarter, Study Finds

Revenue from 802.11 wireless LAN equipment sales grew one percent in the
first quarter, according to a report from the Dell'Oro Group. Worldwide revenue
reached $411 million for the period on a six percent increase in total unit
shipments. According to the report, during the quarter, the emergence of the
802.11g market more than offset traditional seasonal weakness and, despite
not having a finalized standard, 802.11g products comprised 29 percent of the
Small Office/Home Office (SOHO) infrastructure revenues (access points and
broadband gateways). "We anticipate that the SOHO market will rapidly
transition from 802.11b to 802.11g over the course of 2003," said Greg Collins,
director, Dell'Oro Group.
===========================================================================

Wireless networking sales jump

By Dawn Kawamoto
Staff Writer, CNET News.com
May 13, 2003, 3:29 PM PT

Worldwide sales of wireless networking products grew in the first quarter, a
seasonally slow selling period, according to a report released Tuesday from research
firm Dell'Oro Group.

Revenue for wireless networking equipment was $411 million in the first quarter, up 1
percent
from the previous three-month period. Unit shipments for the quarter rose 6 percent to 4.8

million, according to the report.

The sector was bolstered by 802.11g wireless products, which began shipping in the
quarter,
the report said. Products based on the technology accounted for 16 percent of the sector's

revenue, and 17 percent of shipments. 802.11g is a new specification that transmits data
at
54mbps, uses a 2.4GHz band and is compatible with 802.11b equipment.

"We usually see declines in the first quarter," because it follows holiday buying in the
fourth
quarter, said Greg Collins, director of Dell'Oro Group. Last year, first-quarter revenue
declined 3
percent from the fourth quarter, he said.

The sector, which includes products based on 802.11 technologies and equipment such as
access points and network interface cards, is facing a transition.

While products with early versions of 802.11g have already hit the market, the technology
is
not expected to be approved as a standard until this summer. If the standard is approved,
products are expected as early as August.

"The big story for this year will be how 802.11g affects the (802.11b) market and the
standardization that will emerge," Collins said.

The Dell'Oro Group predicts that revenue for the wireless networking sector this year will
be
$1.9 billion, a 20 percent increase from last year, and that unit shipments will rise 60
percent.

For next year, Collins expects more products that combine 802.11g technology with 802.11a,

which is not compatible with 802.11b or 802.11g.

"We've started to see some (combined) 802.11g and 802.11a solutions trickle out to the
market during the first quarter, but likely next year, we'll start to see a dual-band
market take
off as things become price-competitive," Collins said.

The 802.11a technology, which accounted for less than 3 percent of the market in the first

quarter, transmits data up to 54mbps via a higher 5GHz frequency.

802.11b, which represented 81 percent of the market in the first quarter, transmits data
at
11mbps and uses a 2.4GHz radio band.

http://news.com.com/2100-1035-1001359.html

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