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Consumer Market For Wi-Fi Grows Businesses Holding Off Wireless network gear took a hit as companies cut tech budgets in '01.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| May 01, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: MIKE ANGELL

The U.S. economy is rebounding -- thanks to spending by consumers, not businesses. Perhaps nowhere is that more evident than in the market for wireless network gear.

Wireless networking -- which uses a technical standard called Wi-Fi, or 802.11b -- first found favor with high-powered executives. They wanted access to the Internet from wherever they roamed.

But big businesses slashed tech budgets last year, and corporate Wi-Fi spending slowed. That's when consumers and small offices began taking up the slack. They snapped up Wi-Fi gear, linking their home devices to wireless networks.

In fact, sales of Wi-Fi gear to homes may soon exceed sales to businesses, analysts say. "All the companies targeting the consumer market are going to have a very good quarter," said Aaron Vance, an analyst at Synergy Research Group Inc.

As users get more comfortable with Wi-Fi and prices fall, the consumer market should continue to grow, analysts say.

The corporate market may be harder to predict. Many businesses worry that Wi-Fi gear isn't secure or that it will quickly grow obsolete. So they may hold off on investing in the technology.

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