SAN JOSE, Calif.-An international boom in Internet use and the increasing popularity of mobile phones in countries without wireline infrastructure is expected to greatly increase demand for wireless wide area network equipment, according to “World Wireless Wide Area Network Markets,” a new report from Frost & Sullivan.
The report said revenues from this industry are expected to be $4.59 billion this year, with projections of $15.62 billion by 2007.
Since many countries don’t have the resources to provide basic telephone services, laying cable for high-speed Internet access is often out of the question. Telecommunication providers are relying on wireless network technology to supply a less expensive and easier-to-install alternative.
“Countries outside North America cannot afford the same wireline infrastructure that North America enjoys. Those same countries are turning to wireless WAN technologies to avoid the cost of installing a wired network, yet still furnish toll-quality phone service,” said Wai Sing Lee, analyst with Frost & Sullivan.
Even in North America, demand for faster Internet connectivity through wireless technology is driving demand.
“Phone service providers have discovered that cellular phone technology is the most cost-effective way to provide telephone service to a significant proportion of their customer base,” said Lee.