Frost & Sullivan: Wireless Customer Premise Equipment; Get Connected or Get Left Behind

The Original Press Release

Frost & Sullivan: Wireless Customer Premise Equipment; Get Connected or Get Left Behind

MOUNTAIN VIEW, Calif. — April 14, 1997 — North Americans are on the go, and in order to stay in touch they find themselves needing to get connected. A large number of professionals in large organizations are mobile within the building or campus environment and require a means to maintain mobile communications.

According to new strategic research from Frost & Sullivan, North American Wireless Customer Premise Equipment, the market is forecasted to grow at a CAGR of 34.7 percent from 1996-2003. The growth rate has been attributed to such factors as the need for organizations to improve communications, lower costs, generate efficiencies and most importantly, improve customer satisfaction and patient care.

"There are many opportunities for vendors to pursue in this emerging market. However, it is important for vendors to be clear about their target markets and develop strategies based on that choice," said Alpa Butala, Telecommunications Analyst.

"It is critical to develop all other strategies based on the target market because each technology or band has specific advantages and disadvantages. Therefore, each manufacturer must look objectively at the different ways it can design its products, its own capability to develop high quality products in that market, and how it can bring these products to market at a low enough price for customers to recognize cost advantages."

Vendors wishing to stay strong in the market should take precautionary steps to avoid being left behind. These steps include: choosing a target market, determining target market's needs, identifying the optimal spectrum range to utilize (infrared and Industrial Scientific Medical, radio, microwave radio, U-PCS or cellular) based on product and target markets chosen.

Additionally, vendors must select the type of spread spectrum (direct sequence or frequency hopping) to be used in the development of radio solutions and allocate significant resources to research and development to improve range, speed and other technological features.

Furthermore, vendors need to analyze market conditions and potential profitability before venturing into international markets, develop promotional strategies to raise awareness in the market, and should consider joining organizations or building relationships with other vendors to foster interoperability of products.

The United States contributed to approximately 90 percent of wireless CPE revenues, as the U.S. is more heavily populated than Canada and is far ahead of Mexico in terms of technological advancements. There has been growth in Canada in this market primarily for the same reasons as the United States.

This new study analyzes the wireless CPE market by in-building wireless PBX systems (single-zone wireless PBX, multi-zone ISM band wireless PBX, multi-zone U-PCS wireless PBX, zone cellular-based wireless PBX) and building-to-building wireless systems markets (building-to-building wireless voice data communications, building-to-building infrared wireless LAN, and building-to-building radio wave wireless LAN systems markets).

Market participants include: AIRONET Wireless, Communications Inc., Allen Telecom Group, ASTRONET Corporation, Breeze Wireless , Communications Inc. (BreezeCOM), California Microwave Inc., Cincinnati Microwave Inc., Comdial Corporation, C-Spec Corporation, Cylink Corporation, Digital Microwave Corporation, Digital Ocean Corporation, Ericsson Inc., GEC Plessey Semiconductors, Glenayre Western Multiplex, Larus Corporation, Laser Communications Inc., Lucent Technologies, Norand Corp, Northern Telecom, Panasonic Communications & Systems Company, Persoft Inc., Proxim Inc., Schindler Communications Inc., Siemens Business, Communications Systems, SilCom Manufacturing Technology Inc., Solectek Corporation, Southwest Microwave Inc., SpectraLink Corporation, Spectrix Corporation, Symbol Technologies Inc., Toshiba America Information Systems, Transformation Techniques Inc., Uniden America Corporation, VXI Corporation., Windata, Xircom Inc., ADC Kentrox, AeroComm Wireless Inc., Aerotron-Repco Sales Inc., Alcatel Network Systems Inc., Alligator Communications, Inc., Alltel Supply Inc., ALPS U.S.A. Electric Inc., Ameritech Corporation, AMP Inc., Anixter Inc, Apsylog Inc., ARDIS, Assist Software Inc., Astron Corporation, ATC Inc, AUBIS Systems Integration Inc., Black Box Corporation, Cabletron Systems Inc., C&L Communications Inc., Celeritas Technologies, CES Wireless Technologies, Chaparral Communications Inc., Clover Communications Inc, COMSAT RSI, ComStream Co., Connectware Inc., Coral Systems Inc., Criticom Inc., CXR Telecom Corporation, Datalogic Corporation, Datastore Inc., Dawn Satellite Inc., Dayna Communications Inc., Digi International Inc, DSC, Communications Corporation, EF Data Corporation, Electronic Systems Technology, Electro Standards Lab Inc., Epson America Inc., Farallon Communications Inc., Fluke Corporation, Free Wave Technologies, Fujitsu Personal Systems, GE Spacenet Services Inc., Glenayre Electronics, Grayson Electronics Company, Hayes Microcomputer Products Inc, Hewlett-Packard Telecom Group, Intellon Corporation, Johnson Company, LeBlanc Communications, Inc., LNR Communications Inc., Logistics Systems Engineering, Microcom Inc., Mitel Corporation, Nettech Systems Inc., Newbridge, Networks Inc., Nokia, Nokia Mobile Phones Inc., Nucomm Inc, Omnitrend Inc., OptaPhone Systems, Probot Communications Inc., RAD Data Communications Inc., RDC Networks Inc.Real Time Strategies (RTS) Inc, Redcom Laboratories Inc., Resonance Instruments Company Inc., RF Networks Inc., Seiko Telecommunications Systems Inc, Sierra Wireless Inc., Simrad Inc., Simware Inc., Skydata Inc., South Hills Datacom, Southwestern Bell Telephone Company, STM Wireless, Storm Products Company, Summit Communications, Tadiran Telecommunications Inc., TechSmith Corporation, Tekelec Corporation, Telular Corporation, Todd Communications Inc., TransTel Group Inc., Western Datacom Company Inc., Wireless Telecom Inc., Xetron Inc., Yamatech Connectivity Solutions and Zetron Inc.

Frost & Sullivan is an international marketing consulting company that monitors the telecommunications industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications such as #2819-62 North American PBX and Key Telephone Systems Market and to support industry participants with customized consulting needs.

Report: 2697-62 Publication Date: April 1997 Price $3900

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CONTACT: Kimberly Barney of Frost & Sullivan, 415-237-4383, or fax, 415-903-0915, or [email protected], or http: