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Growth Rate of Revenue from the Sales of Wi-Fi Intranet Access Points Was 58 Percent Higher in First Half of 2005 Than Previous YearDUBLIN, Ireland --(Business Wire)-- Sept. 27, 2005 -- Research and Markets (http://www.researchandmarkets.com/reports/c24808) has announced the addition of Infrastructure & Technology-Focus Report of Wi-Fi 2005 to their offering. Findings Wi-Fi Market Profile -- On the global market, demand for chips and equipment used in the manufacturing of Wi-Fi devices will continue to increase smoothly. -- On the global market, it's impossible for an independent ISP to become profitable. However, responses from users are good for Telecom Operators that can provide Wi-Fi services bundled together with a slew of other broadband services. -- On the global market, Wi-Fi services ten to be developed on a large scale. Network Carriers can make a profit only if enough access points support the deployed services. Because of this, the Wi-Fi industry can be greatly enhanced by cooperating amongst themselves. For instance, having a shared user base between access providers would streamline the user experience by allowing a user to login with one ID and password for any location. -- In the domestic market, investments in Wi-Fi from telecom operators have been gradually slowing down Wi-Fi services have begun to be applied in specific industries, like retailing. And it has become widely used as an effective Intranet access point. In the first half of 2005, the growth rate of revenue from the sales of WI-Fi Intranet access points was 58 percent higher than the previous year. Wi-Fi products purchased by individuals also increased by 47 percent. -- The domestic equipment market has two kinds of provider. One is the traditional telecom equipment manufacturers, like Huawei, ZTE, and UT. These companies sell their products directly to telecom carriers and service providers. This type of company is severely constrained by the stagnate investments from the telecom industry. The other kind of equipment provider evolved from intranet access equipment like D-Link, TP-Link, and Linksys. Unlike the former companies, these companies greatly benefit from investments in individual products -- In the domestic market, investments in Wi-Fi from telecom operators have been gradually slowing down Wi-Fi services have begun to be applied in specific industries, like retailing. And it has become widely used as an effective Intranet access point. In the first half of 2005, the growth rate of revenue from the sales of WI-Fi Intranet access points was 58 percent higher than the previous year. Wi-Fi products purchased by individuals also increased by 47 percent. -- The domestic equipment market has two kinds of provider. One is the traditional telecom equipment manufacturers, like Huawei, ZTE, and UT. These companies sell their products directly to telecom carriers and service providers. This type of company is severely constrained by the stagnate investments from the telecom industry. The other kind of equipment provider evolved from intranet access equipment like D-Link, TP-Link, and Linksys. Unlike the former companies, these companies greatly benefit from investments in individual products. -- Although there has been recent growth in the domestic WLAN market, many of the core technologies used in production are at the mercy of overseas chip manufacturers. Because the barriers for entering the WLAN market are relatively low, it has been flooded with companies resulting in severe competition and decreased profits. Product features -- The form factor of Wi-Fi products has been gradually changing since its inception. Originally, it was deployed as a pure access point, offering a way to connect to the existing infrastructure. But now, it is more concentrating on intelligent functionality with the new devices that offer switching and routing capabilities. These have eliminated the original forms and have become the major products of the Wi-Fi market. -- There are several major issues concerning the future of Wi-Fi technologies. These issues are related to the following areas of concern: Security, QoS (Quality of Service), location based services, support for IPv6 technologies, and resource management for wireless equipment. Chief Challenges faced by Wi-Fi Implementers There are many challenges that must be faced by those who whish to implement the Wi-Fi technologies. -- The challenges for the telecom industry can be summed up with the following questions that need to be answered. -- Is it necessary to continue investing in Wi-Fi networks? -- How should we invest in Wi-Fi technologies? -- How is the Wi-Fi market defined? -- Do we need to reconsider the target market segments? -- Do we need to segregate the market differently? -- The chief problems faced by enterprise and internal IT implementers can be listed as follows: -- Enterprises will encounter security issues from attempted hacker intrusions to the private intranet. Hackers will try to gain access by intercepting wireless signals. -- Enterprises will also have to deal with internal user security as employees deploy readily available access points in an unapproved manner. Such deployments are usually not secure and allow penetrations from the hackers previously discussed. -- Enterprises will also have to overcome the decision issues that apply to Wi-Fi deployment, especially considering improvements to operation efficiency. -- Individual users that implement Wi-Fi technologies will also discover problems. Wi-Fi services that are provided by the telecom industries will be too expensive for most users. This especially becomes an issue because of the lack of necessity, since most home computers are desktop PCs that don't have the need for mobile functionality. Chief Challenges faced by Wi-Fi equipment providers and manufacturers -- The telecom equipment providers must adopt a completely different strategy for selling Wi-Fi products. In this sense, Huawei is currently one of the leaders. -- Providers of traditional IT products will need to discover ways to benefit from a changing market by using various chips from different manufacturers. By juggling agreements with chip providers, they can seize some opportunities the Wi-Fi technology development. This is especially true for those companies that are small or are new to the Chinese market. For more information visit http://www.researchandmarkets.com/reports/c24808 |
