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August 22, 2007

SOHO Market Driving Wireless Movement

By Raju Shanbhag, TMCnet Contributing Editor

While a large, well known enterprise deployments of new technologies often dominate the headlines, small and mid-sized businesses, in many cases, are the true drivers of vendors’ success. This is certainly the case for wireless LAN (WLAN) equipment vendors. According to a Dell’ (News - Alert)Oro Group report, vendors of SOHO wireless LAN products have shipped more than 100 million units over the past three years.

It is estimated that Draft-802.11n wireless routers have contributed handsomely to this growth in SOHO sales; vendors registered a 15% growth in sales in Q2 2007, compared to Q2 2006. In fact, the report sates that the SOHO segment has remained the largest single segment of the total WLAN market, having contributed the lion’s share of the WLAN market in each of the past four quarters.  According to Elmer Choy, senior analyst of wireless LAN research at Dell’Oro Group, this strong performance from the SOHO segment has resulted in half of the broadband subscriber base to opt for the wireless capabilities.
Even though most of these sales have come from retail purchases of wireless routers, ISPs are now pushing ahead with the sale of wireless enabled customer premises equipment, which are becoming tremendously successful. It also creates a more manageable wireless environment for the ISPs, as customers will have a common wireless infrastructure.
The Dell’Oro Group Quarterly Wireless LAN report offers in-depth coverage of the service provider, enterprise, SOHO, and external client devices markets with tables containing manufacturers’ revenue, average selling prices, and unit shipments by the following wireless standards: 802.11b, 802.11g, 802.11a/g and 802.11n.
Raju Shanbhag is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
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