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* growth driven by demand from business customers wanting cheap and fast
remote Internet access (up to 11Mbit/s)


* but service providers must address network detection, security and pricing
issues if uptake is to accelerate


* hot-spot locations will increase from 3700 in 2002 to over 41 000 by 2007


* WLAN-enabled devices to top 91 million in next five years


* revenues from WLAN market will reach billion by 2007, which equates to
25% of mobile data service revenues.




SAN FRANCISCO, CA, February 7, 2002 - More than 21 million Americans will be using public wireless local area networks (WLANs) in 2007, attracted by the cheap and superfast remote Internet access provided in airports, shopping malls, coffee bars and hotels, according to Public Wireless LAN Access: US Market Forecasts 2002-2007. This new report is published this week by Analysys, the global adviser on telecoms and new media ( http://www.analysys.com).



Figure: Potential public WLAN users in the USA, 2002-2007 [Source: Analysys Research, 2002] - available to journalists on request (see word/pdf file attached).



Public WLAN services enable users to hook up their laptops and PDAs to their Internet service provider (ISP) or company intranet at speeds of up to 11Mbit/s. "The appeal of these services means that the number of hot-spot locations in the US will grow from 3700 this year to 41 000 by 2007," says report co-author, Monica Paolini, who is based in Analysys's San Francisco office. "This will in turn generate over billion in service revenues."


A major impetus for the development of this market is the industry-wide adoption of a common technical platform based on the IEEE 802.11b standard. A rapidly growing number of devices (forecast to top 91 million in the next five years), such as PDAs and laptops, are now being shipped with cards already installed that can make use of public WLAN networks.



However, there are still some issues to be resolved, according to the report, notably the ability of public WLAN operators to provide a wide coverage for potential users. These operators need to pursue roaming agreements with each other to minimize the cost of deploying access gateways in every possible hot-spot location.



"For the market to accelerate as we expect, it's imperative for service providers to offer better location information and network detection software as part of well-presented service propositions with appropriate security and pricing," adds Monica Paolini.



One of the biggest questions raised by these new services is the impact they will have on cellular operators as they attempt to develop new fast data services. By 2007, Analysys predicts that the public WLAN market will equate to about 25% of mobile data service revenues and could cannibalize up to 7% of cellular data operator revenues in the US.



Written by Monica Paolini and Ross Pow, the report presents revenue forecasts to 2007 for public WLAN services in the US and reviews the strategies and business cases of different participants in the market, including cellular operators, fixed line operators and new entrants.



The report is available at: £650/5 for single-user electronic access. For more information, telephone Analysys Research on +44 (0) 1223 341300 or email research@analysys.com .




About Analysys ( http://www.analysys.com)



Analysys, the global advisor in telecoms, IT and new media, works at the forefront of the communications revolution, delivering advice and insight to established and new entrant players. From offices in Cambridge, London, Glasgow, Madrid, Milan, Paris, San Francisco and Washington DC, over 170 Analysys staff provide strategy and systems consultancy, conferences, information services and start-up support to the companies that are creating the networked economy.



Analysys Research reports, papers and on-line services provide authoritative coverage of this convergent industry, based on an unrivalled ability to fuse real-world experience, rigorous research and forward-looking analysis.



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* Public Wireless LAN Access: Market Forecasts (November 2001)


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Media contact (for author photography, executive summaries, charts and interviews)




Martin Brooke
Martin Brooke Associates
Tel: +44 (0)1223 264050
Email: martin.brooke@dial.pipex.com

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