Worldwide Wireless Infrastructure Expenditures

Report Highlights

• Worldwide wireless infrastructure expenditure currently is estimated at $177.5 billion for 2004. Expected to expand at an AAGR (average annual growth rate) of 2.5%, this market will reach $201.4 billion by 2009.
• The two largest segments in the market are WAN hardware and end-user devices. WAN hardware will see an AAGR of 1.8% as carriers move to 3G technology and start to ship more video transmissions over their networks. End-user devices account for more than half the revenue generated and represent an area of intense innovation.
• The fastest growing segment is WLANs that just now are entering the rapid ramp-up phase, a trend underscored by growing interest in home networking.

INTRODUCTION

The communications industry has been changing during the past few years, and quite dramatically. As a result, wireless communication continue to be a hot area for telecom suppliers. Because they offer users a number of benefits, demand for these services, from es as well consumers, continues to rise. Carriers are deploying new cellular services, such as text-based messaging and video. The ongoing rise in demand for wireless communication services leads to a corresponding increase in demand for wireless infrastructure.

Equipment providers have responded to these changes with a host of new products, including base stations, operational software and network switches. Also, consumer manufacturers have been building new video phones, personal digital assistants (PDAs) and laptop computer extensions.

This BCC report examines all of the equipment needed to make these services thrive, from carrier base stations to next-generation phones. The study analyzes and forecasts market trends in each emerging technology and application, including specific products and end-user segments. Long-term economic, , regulatory, environmental and other macro issues raised by these trends also are analyzed. The report further delineates immediate and long-term commercial opportunities for vendors interested in servicing the wireless market segment.

SCOPE OF STUDY

The report contains:

• Coverage of key product segments, including spending on wireless infrastructure equipment for a variety of services
• Examination of factors fueling growth in wireless local area networks (LANs)
• Examination of the software carriers needed to operate wireless networks
• Explanations of the various technologies used and easy-to-follow discussions of the level of maturity of the different technologies
• Descriptions of steps that must be taken so use of these products and services can become more common
• Sales forecasts and projections through 2009 for the number of individuals using the services, revenues they generate and anticipated growth rates.

METHODOLOGY AND INFORMATION SOURCES

Preparation of this report involved in-depth study and critical analysis of published data from a wide variety of government and private sources. Industry projections have been made by BCC based on original studies of economic, social, and demographic information, as well as on critical examination of projections by industry analysts and those found in public sources. Information included in the report comes from primary BCC research, input from key suppliers in the various market segments, and government reports from organizations such as the U.S. Census Bureau and Small Administration.

ANALYST CREDENTIALS

Paul Korzeniowski (Email: paulkorzen@aol.com) has been writing about information technology (IT) issues for more than two decades. His work has appeared in a number of publications, including Investors Daily, eWeek, Network World, and Information Week. His articles have discussed all types of computer, network, and software products and services, from mainframes to handhelds, enterprise resource planning (ERP) systems to collaboration tools, and dial-up links to optical transmission systems. In addition, he has worked for a number of vendors and has produced white papers, case studies, and market research studies.