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119% Growth for Australian Wireless LAN Market, Reveals IDC

Announcement posted by IDC 31 Mar 2005

IDC Australia's Quarterly WLAN tracker research which covers Access Points, Wireless Broadband Routers, Bridges, Wireless NICs and Wireless Switches reveals that the overall Australia WLAN Equipment market has more than doubled (119%) in 2004 over 2003.
The Wireless Broadband Router is the main culprit leading to the explosive growth of the Australian WLAN Equipment market. The A$29.95 256Mbps Entry-Level Broadband plans launched by Telstra back in February 2004 led to a heated broadband price war amongst Internet Service Providers (ISPs), causing skyrocketing broadband uptake in Australia and the mushrooming of home and Small business' WLAN networks as a flow-on effect.
Despite the ISPs high pricing of Wireless Broadband Routers and lack of push in creatively bundling them into their broadband packages; IDC found that Australian consumers and small business owners have been acquiring these Wireless Broadband Routers through resellers and retailers and creating their own Do-It-Yourself wireless networks.
"Shipments of Wireless Switches also skyrocketed in 2004, particularly as the Wireless Switch/Thin Access Point architecture takes centre stage in Enterprise WLAN deployments. Airespace's rapid growth in the WLAN market through its OEM partnerships with Nortel, Alcatel and NEC, and its subsequent acquisition in January 2005 by Cisco attests to the manageability, security and reduced TCO promised by the Wireless Switch/Thin Access Point architecture," said, Shing Quah, IDC Telecommunications, Associate Analyst.
"The Airespace acquisition not only completes Cisco's WLAN offerings for its Medium Enterprises, it has also prompted Cisco's staunch rivals Nortel and Alcatel to rethink their WLAN strategy. Alcatel subsequently announced an OEM deal with Aruba Networks, followed by Nortel's announcement of their OEM partnership with Trapeze Networks, thus sharing the OEM partner as 3Com," added Ms Quah.
IDC's Snapshot of the 2004 Australia WLAN Equipment Market:
* Netgear is the champion of the 2004 Australia WLAN Equipment Market through its shipments to the SME, Education and Consumer verticals.
* Cisco ranks a close second in the overall 2004 WLAN race but will increasingly become a threat to Netgear's Top reign as deployments and flow on effects of its Victorian DET 9000-Access Points win kicks in.
* D-Link sits pretty in the 3rd spot in the WLAN Equipment Market, gaining market share quarter over quarter as it achieves wireless volume growth in CPE as well as its push into SMEs.
IDCs Quarterly WLAN Tracker includes information on the Access Points, Bridges Wireless Broadband Routers/Gateways, Wireless NICs and Wireless Switches, also vertical splits and forecasts and analysis.
To purchase this tracker, please call the IDC sales team on (61 2) 9925-2226 or email Gary Clarke on gclarke@idc.com.
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