Global wireless local area network (Lan) shipments experienced strong growth in 2002, but analysts said yesterday that revenue failed to grow as fast.
According to a report from Gartner Dataquest, global wireless Lan shipments totalled 19.5 million in 2002, up 120 per cent from 8.9 million in 2001.
But the analyst found that end user spending increased just 29 per cent over the period because of falling equipment prices.
"As one of the few growth areas in network equipment, the wireless Lan market is attracting a large number of vendors," said Andy Rolfe, principal analyst at Gartner's worldwide telecoms and networking group.
"The resulting competition is forcing prices down, benefiting end users by creating a wide choice of low-cost products."
Rolfe explained that demand for mobile access to corporate applications will drive strong sales growth.
But he warned that the market requires multi-vendor compatibility as wireless Lan adapters are being integrated into new mobile PCs.
"However, the standards are as yet incomplete particularly with regard to security," he said.
"End users and wireless Lan service providers should not rely on overly proprietary features, but should employ standard wireless Lan networks and provide security at higher layers."
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