Wireless Data Market Emerging from Early Turbulent Growth, According to Cahners In-Stat Group

The wireless data market has gone through a turbulent growth process according to Cahners In-Stat Group (www.instat.com), as constrained service availability has greatly inhibited adoption.

However, the high-tech research firm predicts the wireless data market will grow more rapidly in the future, based on the deployment of 2.5G services such as General Packet Radio Service (GPRS) and Code Division Multiple Access 1x (CDMA 1x). Additionally, new application development will be spurred by the availability of Wireless Application Protocol (WAP) 2.0, Qualcomm's Binary Runtime Environment for Wireless (BREW), and Sun's Java 2 Microedition (J2ME) technology.

According to Becky Diercks, Director at In-Stat, "Wireless data services have been more widely available for the past two years. Sprint PCS' Wireless Web service brought the technology into the consumer mainstream, where before it had been a poor wireless technology stepchild." Still, the technology has its problems. While geographic coverage has improved, data speeds are still slow and service prices quite high in some instances. In-Stat believes that horizontal applications-- those that can be used across industries, such as e-mail-- will drive the mass market. It is cautioned that while the broad availability of wireless data services will assist this market's growth, cost must continue to decline. Carriers must strive to offer fixed rates, or risk stunting the market's growth.

In-Stat has also found that:

-- Demographically, the largest markets for wireless data services over the next five years will be the consumer and large business markets.

-- The number of wireless data subscribers in small businesses is forecasted to grow from 765,000 in 2000, to more than 7.3 million in 2005.

-- SMS (Short Messaging Service) will never experience widespread adoption in the United States. Instead, wireless instant messaging, with presence information, and e-mail will be more successful domestically.

The report, " The U.S. Wireless Data Market: Here and Beyond" (#MD0109MP), provides projections for the domestic wireless data market and includes forecasts for the various technologies that it is made of, including messaging technologies, wireless Internet, circuit-and packet-switched services, and two-way messaging technology. Also, forecasts for Small Office/Home Office (SOHO), small, middle and large businesses, and the residential consumer market are included. To purchase this report, or for more information, please visit http://www.instat.com/catalog/cat-md.htm#md0109mp or contact Matthew Woods at 617.630.2139; mwoods@instat.com.

The report price is $2,995 USD.


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