Report Bullish on 5 GHz Market

A new report from Frost

& Sullivan, "The Global Market for 5GHz Wireless Technology,"

says that the market for 5 GHz fixed wireless equipment will will leap

from $0.01 billion in 2001 to $4.75 billion in 2005.

The report predicts that increasing miniaturisation of 5Ghz silicon technology,

plummeting costs, lower power consumption, and wider availability, will

help the market to gradually become more established, and eventually enter

the mainstream.

The report further predicts that by 2005, 5 GHz equipment will be competing successfully with 2.4 GHz equipment.

Jan ten Sythoff, Programme Manager at Frost & Sullivan, noted that regulation

is holding back the 5 GHz market. "There are different regulations

governing 5 GHz technology in different parts of the world," he explains,

"and consequently, inconsistent standards have been introduced to

accommodate these rules. The lack of standardisation will continue to

inhibit growth in the 5G Hz space."

5 GHz technology is also strongly backed by a number of globally-influential

corporate behemoths (such as Cisco, Intel, Ericsson and NTT East) from

different parts of the value chain.

The report concludes by noting that if 3G technology is deployed, 5 GHz

technology will benefit from the new opportunities for wireless LANs the

3G technology will enable.

As to other wireless technologies, the report is not optimistic about

Home RF. However, internetnews.com

reported on May 3, 2001 that a new standard, HomeRF 2.0, will increase

the speed of Home RF to within 10 percent of the speed of Wi-Fi. Home

RF 2.0 is supported by a number of companies, including Compaq, Intel,

Motorola, Proxim and Siemens. Apple Computer, Cisco Systems, 3Com, Lucent

Technologies sell products that support the Wi-Fi wireless standard.

The study is optimistic about Bluetooth, and predicts shipments of Bluetooth-embedded

products to shoot up from its current level of 11 million to 600 million

units in 2005.