Frost: Voice over Wireless Local Area Network Devices to Provide Flexible Work Environment
December 15, 2008 // Published as a news service by IHS
Though the demand for voice over wireless local area network (VoWLAN) is dependent upon the availability of wireless local area network (WLAN) infrastructure, enterprises are recognizing the need for on-site mobile voice communications and ensuring that their WLANs are voice-compatible.
According to Frost & Sullivan, VoWLAN solutions - regardless of the type of organization - are significantly being perceived as essential to enhance communication, improve efficiency and productivity and create a flexible work environment.
Recent analysis from Frost & Sullivan of the North American enterprise VoWLAN device markets found earned revenues of $110.5 million in 2007, with estimates to reach $2.15 billion in 2014.
"Although market growth has been fueled by the deployment of single-mode devices implemented by verticals or industries such as manufacturing, health care and education, VoWLAN-enabled dual-mode phones are expected to be the main drivers of the overall VoWLAN growth," said Frost & Sullivan research analyst Alaa Saayed. "At this point, 71% of the revenues are expected to come from VoWLAN-enabled dual-mode devices."
Dual-mode VoWLAN devices geared toward the enterprise expect to penetrate the enterprise space in the coming two to three years, finally surpassing the market of single-mode devices in 2012. As enterprise Internet protocol (IP) telephony matures, analysts said the possibility of extending IP voice throughout the WLAN and leveraging IP telephony systems has been on the rise.
"The general 'Mobility Revolution,' the growing penetration of WLAN networks, the increased availability of advanced single-mode and dual-mode handsets and the progress of newly developed industry standards such as [IEEE] 802.11n, are the main factors driving the penetration of VoWLAN devices," said Saayed.
"Although the market is showing several growth opportunities within enterprise wireless communications, restraints such as the high cost of handsets, slow ratification of standards and the availability of cheaper mobile communications - such as flat cellular plans and softphones - could result in slow revenue growth for VoWLAN device vendors," said Saayed.
"Furthermore, multiple challenges, such as the cost of introducing a VoWLAN mobility solution, the misconceptions built around wireless security and QoS [quality of service], and the lack of proper business models around VoWLAN-enabled dual-mode phones, may further deter future profit margins," Saayed said.
Analysts said the perceived lack of security in WLANs is a major issue that persists despite the creation of new encryption methods. There is a need for wireless carriers and service providers to develop sustainable business models, as well as institute efficient and accurate billing processes in order to be able to implement VoWLAN-enabled dual-mode telephony. Despite the hype, fixed-mobile convergence (FMC) has gained little penetration in the enterprise market so far.
Source: Frost & Sullivan.