25 Million Cellular-WLAN Devices by 2006

A new report from research firm Disruptive Analysis predicts that there could be as many as 25m "multimode" wireless devices worldwide by the end of 2006, mostly laptops, PDAs and mobile phones. These devices will be able to hop between cellular and WLAN networks.

"Multimode" functionality will aim to deliver "seamless" mobility: devices which will automatically roam from one network type to another. Packaged into broader solutions, such devices will, theoretically, switch to the best available wireless network, based on bandwidth, quality and price, without interrupting traffic or applications. (Note: multimode roaming is also referred to as "seamless mobility", "access agnosticism", "always best connected" and "multi-access mobility").

The report says that the market will initially be driven by laptops and industrial handhelds, typically provided as part of large custom systems integration projects. Key early adopters are corporate mobile workforces ("road warriors"), field service/logistics personnel and military/public safety forces. Multimode wireless voice products and services also have great potential, with hybrid WLAN/cellular handsets emerging in 2004.

The common view that cellular operators are natural winners in providing multimode services is highly questionable. Although many are deploying WLAN services, Disruptive Analysis sees this mostly as a damage-limitation exercise: independent multimode poses threats to carriers' 2.5/3G data pricing models. Few operators have corporate-grade solutions sales, software integration or customer support abilities; they will need to have deeper partnerships with IT firms, or wholesale data access to specialist providers.

However, Disruptive Analysis believes those companies looking to exploit these opportunities will have to contend with stiff challenges: the evolution of multimode wireless is still at a very early stage. User awareness of the benefits is still low, industry cooperation is patchy, a variety of technical issues remain and existing data mobility business models - especially cellular operators' - are threatened. Focused and much-improved planning and marketing will be essential - and certain companies will have to grasp uncomfortable nettles and develop more pragmatic attitudes towards their commercial relationships and partners.

If these issues are resolved satisfactorily, the multimode wireless space could expand very rapidly. Disruptive Analysis forecasts a potential 25m worldwide installed base of WLAN/cellular devices by end-2006, together with a market for managed corporate mobility services in excess of US$4 billion."

Posted to the site on 26th September 2003

Posted to: www.cellular-news.com/story/9797.php