Wednesday, February 8, 2006

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Dual-Mode Cellular/WiFi Device Will Drive Enterprise VoWLAN Growth

Business Wire February 8, 2006 Parsippany, NJ Enterprise Voice-over-Wireless-LAN (VoWLAN) usage is expected to grow dramatically during the next three years, according to a new study issued by InfoTech as part of the InfoTrack for Enterprise Mobility program. In the most recent Mobile Communications in the U.S. Workplace report, InfoTech predicts that annual U.S. enterprise VoWLAN revenues will reach $1.1 billion by 2010, with Dual-Mode Cellular/WiFi devices contributing the bulk of these revenues.

InfoTech’s unique 1,800-member panel of IT/telecom enterprise decision makers was asked about current and projected utilization of twelve specific mobile applications. According to the panel, the 30% of companies currently implementing some form of VoWLAN today is expected to more than double to 77% by end-of-year 2008.

“Cellular/WiFi device is driving this growth – not the WiFi-only phone,” stated Jeanine Sterling, VP and Program Director of InfoTech’s IEM program. “Not only does the number of companies purchasing Dual-Mode devices increase dramatically – but adoption of this handheld within these companies is expected to ripple quickly through once a critical mass of models is available.”

“For vendors and providers, the implications are clear. Expect the single-mode WiFi-only phone to remain a niche product. The main growth area is the dual-mode device and the infrastructure to support it. In light of the enterprise’s desire for streamlined, converged communication, Dual-Mode Cellular/WiFi handhelds are perceived by customers as the next logical step.”

InfoTech’s U.S. business VoWLAN forecast recognizes its respondents’ high level of interest and aggressive adoption plans, but also takes into consideration the current slow pace of Dual-Mode Device introductions. “We believe the breakout period for the sale of these devices will begin in the 2007-2008 timeframe. Until then, interested businesses will focus on pilots. We also foresee a more controlled pricing dynamic than some other analysts do. We don’t expect enterprise Dual-Mode prices to dip to the $400 level until 2008 at the earliest. Vendors are going to want to enjoy some margin benefits before becoming more aggressive.”

InfoTech will continue to monitor customer plans regarding Enterprise Voice-over-WLAN, Dual-Mode Cellular/WiFi Devices, and other selected mobile devices and applications in future IEM reports.
 

About InfoTech

InfoTech, part of The Telecom Intelligence Group, publishes a series of reports on enterprise mobile communications as part of its InfoTrack for Enterprise Mobility (IEM) program. Its just-released report, Mobile Communications in the U.S. Workplace, is a cornerstone analysis based on primary research conducted during Fourth Quarter 2005. Topics covered include: mobile workforce composition, enterprise adoption of specific mobile communications devices and applications, purchase behavior around Wireless LANs, and preferred service and support partners for mobile solutions. A five-year Voice-over-WLAN forecast is also provided.

For more information on IEM and the Mobile Communications in the U.S. Workplace report, please visit www.telecomweb-infotech.com/IEMreportMCWP.html.

About The Telecom Intelligence Group

The Telecom Intelligence Group includes market intelligence provider InfoTech; TelecomWeb and TelecomWeb news break; newsletters Wireless Business Forecast, Broadband Business Forecast and Telecom Policy Report; tariff consultancy Tarifica; and the Web-based business-telephony-product database Telecom Tactics.

Contacts:

Mike O'Neill, vice president and publisher, moneill@accessintel.com