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Wireless LAN market takes off

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CIOL Bureau
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SAN FRANCISCO: Sales of telecommunications hardware used in wireless local-area networks will grow more than 60 percent through 2006, even though businesses and large institutions have been slow to roll out the technology so far, an industry report said.



Global sales of hardware used in wireless local-area networks totaled $1.68 billion last year. Such sales are seen rising 62 percent to $2.72 billion in 2006, market research firm Infonetics Research Inc. said.



Cisco Systems Inc., the No. 1 network equipment maker, and Linksys, a privately held network hardware maker in Irvine, California, were the wireless LAN market-share leaders in the fourth quarter and are expected to hold on to their top spots this year, Infonetics said.



However, businesses, the so-called enterprise market, comprised of government agencies and large institutions such as hospitals and universities, will not rush to buy and deploy so-called wireless LAN systems, Infonetics said.



While the so-called wireless LAN market has posted several consecutive quarters of growth, the growth has not been as explosive as initially expected, and purchasing departments throughout the enterprise market have rising expectations for the capabilities of wireless LAN systems, Infonetics said.



"White-collar enterprises, a major potential market, still need some convincing on security and network control issues," said Infonetics analyst Richard Webb.



About 58 percent of revenues from sales of wireless LAN hardware in the fourth quarter came from North America, and that level is seen holding fairly steady this year, San Jose, California-based Infonetics said. Separately, Cisco on Monday said it would license technology at no cost to a number of chipmakers to boost the use of wireless LANs by mobile work forces.



Cisco said it will license its technology to Intel Corp., Texas Instruments Inc. and other chipmakers so they may develop new products with embedded features for use in notebook PCs, personal digital assistants and other mobile devices compatible with Cisco's network gear. Cisco said computer makers IBM and Hewlett-Packard will work with chipmakers in its wireless technology partnership to manufacture devices compatible with Cisco network equipment.





© Reuters



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