Wireless LAN Draft-802.11n Sales Buoy the SOHO Market During Initial Quarter of Shipments, According to Dell’Oro Group

Average Selling Prices Too High For Mass Adoption

REDWOOD CITY, Calif. – August 21, 2006 – A recently published report from Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, reveals that sales of wireless LAN products based on the draft 802.11n standard began shipping during the second quarter and helped buoy the small office and home office (SOHO) market in a seasonally slow quarter.  The report indicates consumer demand for these draft 802.11n (Draft-n) products with greater range and speed than 802.11g products was strong despite significantly higher average selling prices.

“The difference in average selling prices between a Draft-n router and a 802.11g router is too high to generate mass appeal,” said Elmer Choy, Analyst of Wireless LAN Research at Dell’Oro Group.  “When 802.11g routers were first introduced in 2003, their average selling prices were only 28 percent more than those of 802.11b routers, which made it easy for consumers to justify the upgrade to the newer technology.  However, current Draft-n router prices are more than double that of the 802.11g routers, which makes for a more difficult upgrade decision,” Choy added.

The report also shows shipments of broadband CPE with embedded wireless LAN were up over 30 percent from the year ago period, as service providers more widely offer CPE with wireless capabilities.  Shipments of SOHO equipment were up in all regions of the world, except EMEA that pulled back after five years of growth.

In the service provider segment, mesh radios were up 40 percent over the prior quarter.

About the Report

The Dell’Oro Group Quarterly Wireless LAN report offers complete, in-depth coverage of the Wireless LAN service provider, enterprise, SOHO, and client devices markets with tables containing manufacturers' revenue, average selling prices, and unit shipments by the following wireless standards:  802.11b, 802.11g, 802.11a/g and 802.11n.  To purchase this report, contact Margaret Miles at +1.650.622.9400 x225 or email Margaret@delloro.com

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.