IDC: Wi-Fi hype contrasts with reality

Analyst firm International Data Corp. (IDC) threw some cold water on the hotspot hype this week, predicting that although worldwide commercial Wi-Fi locations are set to grow 57 per cent annually over the next five years, the market is still young and rife with uncertainty.

In a summary of a report released Thursday, IDC analysts likened the hotspot market to a “technology gold rush” and warned that despite promises it is 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 or 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 amongst 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 per cent annually over the next five years , while the number of users is due to double each year over that same period. By 2008, hotspot users will approach 25 million, IDC said.

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now