Mobil Internet users revitalize wireless LANs - Industry Trend or Event

Communications News, April, 2001 by Morris Edwards

Move to 5-Ghz band spurs growth.

With the growing popularity of mobile devices and user demands for high-speed Internet access, enterprises are once again exploring their wireless LAN options.

Wireless LANs have already proven to be an effective tool for improving productivity with specialized applications in such industries as manufacturing, healthcare, retailing and wholesaling. Slow speeds, high prices and the lack of standards, however, have prevented the widespread use of wireless LANs throughout enterprises. That situation started to change with the adoption of the IEEE 802.11b specification 18 months ago, which raised speeds from 2 to 11 Mbps and brought some standardization to wireless LAN products.

Other standards are in the works that will take the speed to 54 Mbps, but at a cost of adding to the interoperability challenge and possibly creating user confusion with the multiplicity of standards (see sidebar: "Standards spread confusion, while increasing speeds"). Even so, market researcher IDC expects wireless LANs to become increasingly popular in the years ahead, growing at a projected compound annual rate of 46% through 2004.

Wireless LANs operate in three authorized, unlicensed bands: the 902- to 928-MHz industrial band; the 2.4- to 2.4835-GHz scientific band; and the 5.15- to 5.35-GHz and 5.725- to 5.825-GHz medical band, the latest to be approved by the FCC. Lower-cost systems in the industrial band still account for the majority of wireless LANs installed, but the higher-speed 2.4-GHz systems are now the preferred choice.

Crowding in this band, and the higher speeds possible in the medical band, however, are fueling demand for 5-GHz systems. IDC expects 5-GHz systems will overtake 2.4-GHz designs in popularity by next year, and will account for twice as many installations by 2004.

IDC also predicts that direct-sequence spread-spectrum (DSSS) systems will account for a growing share of wireless LANs, especially for enterprise use, because of their higher throughput. Even so, IDC expects frequency-hopping spread-spectrum (FHSS) systems will remain popular in finance, healthcare and government, where security and reliability are important, and in applications requiring immunity to interference and echoes.

PRODUCT POTPOURI

Vendors used to specialize in either DSSS or FHSS products, but most now support both architectures. In addition, all the major vendors are planning to introduce 5-GHz systems. Divisions will remain, however, since some have announced support for HiperLAN1, others for HiperLAN2 and still others for IEEE 802.11a.

Proxim Inc., Sunnyvale, CA, which, according to IDC, has the largest wireless LAN market share of 34.2%, is expected to be the first to introduce a 5-GHz product based on HiperLAN1. Its RangeLAN5 family will support data rates to 24 Mbps, and provide quality-of-service (QoS) features for handling voice and video streaming over the wireless LAN.

Proxim is also active in the HomeRF working group, and has developed a second-generation wideband solution that takes advantage of a recent FCC ruling to support data, voice and streaming media at rates to 10 Mbps, or six times the rate in the original SWAP specification. Intended for use in small offices and at home, the HomeRF 2.0 products support up to eight voice channels and provide priority access for streaming media.

Cisco Systems became the second largest player in the wireless LAN market when it acquired Aironet Wireless Communications, Akron, OH, last year for $799 million in stock. The Cisco Aironet 340 series products comply with the IEEE 802.11b standard for operation to 11 Mbps, and provide up to 128-bit wired equivalent privacy (WEP) encryption for data security comparable to traditional wired LANs.

Cisco is targeting enterprises with its new 350 series of IEEE 802.11b-compliant access points, bridges and client adapters, which are based on the firm's architecture for voice, video and integrated data. Designed to integrate seamlessly with wired ethernet LANs, the 350 family replaces WEP key management with a centralized security management framework that integrates dynamic single-session, single-user encryption keys with network logon.

It also uses standard security protocols, such as RADIUS, for centralized user identification, authentication, dynamic key management and accounting. Combined with the Cisco Internet Mobile Office, the 350 family gives mobile professionals secure, high-speed access to the Internet and enterprise intranets from airports and hotels, or while roaming around their enterprise campus.

Well known for its industrial scanners, Symbol Technologies Inc., Holtsville, NY, is also a major player in wireless LANs, with a market share of 15.4%. Its Spectrum24 family includes IEEE 802.11b-compliant products operating at rates to 11 Mbps. It recently won a $70 million contract from Kmart Corp. to implement in-store wireless and mobile computing solutions in its entire chain of more than 2,100 stores. Kmart will use a Spectrum24 wireless LAN backbone and Symbol's PDT 6840 wireless hand-held mobile computers.