Q3 shows $100m contribution for Wireless LAN Access Points…

RNCOS,: Software and service revenues generated by wireless LAN hardware providers are not expected to grow at the same rate as hardware offerings because WLAN (Wireless LAN) security is distributed through indirect channels. Moreover majority of the software that’s supplied is not sold separately but comes packed with the access points. Contrary to initial expectations, the price reduction curve has not been steep but rather gradual, in anticipation of the steeply priced next generation technology innovations.

The global WLAN (Wireless Local Area Network) Worldwide market shares grew 5% sequentially and then reached to over 11%, year-over-year.

The increase in the market growth will have an accelerating effect on the sales of Enterprise Switches/Controllers and 'Light' Access Points which cumulatively reaches to nearly $100 million in the quarter.The market for access points is expected to grow from about $33.5 million to about $974.3 million, from 2004 through 2009.

Global growth rates for wireless LAN hardware, software and services are forecast to be in range of 37% and 44% compounded annually through 2005-06. Singular unit growth rates are also expected to rise substantially with a continuing decline in the prices for wireless LAN. Wireless LAN Security — An Industry Outlook Publ 2006016