Despite growth in Wi-Fi technology, uncertainty remains ..
By Scarlet Pruitt, IDG News Service
JUNE 20, 2003
Analyst firm IDC threw some cold water on the wireless hot-spot hype this week, predicting that although worldwide commercial Wi-Fi locations are set to grow 57% annually over the next five years, the market is still young and rife with uncertainty.
In a summary of a report released yesterday, IDC analysts likened the hot-spot market to a "technology gold rush" and warned that, despite promises, it's still in the early phases of deployment. Most business models are not yet proven, and the competitive landscape is very unclear, Keith Waryas, research manager of IDC's Wireless Business Network Services program, said in a statement.
The firm predicted that the Wi-Fi market would evolve in two stages, with an emphasis on network expansion over the next two years, followed by three years of relationship building among carriers. During the second phase, carriers will make network roaming agreements and partnerships that will be essential to filling gaps in their individual networks, IDC said.
Still, the market could offer some sizzling revenue opportunities. IDC estimated that Wi-Fi revenue streams would grow 143% annually over the next five years and that the number of users is due to double each year over that same period. By 2008, hot-spot users will approach 25 million, IDC said.
IDC, in Framingham, Mass., is a division of International Data Group Inc., parent company of IDG News Service.
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