Strategy Analytics Forecasts 9 Million PC Card & Embedded 3G/3.5G Modems Sales in 2007

Business Wire, Feb 1, 2007

WLAN Limitations & Distant WiMAX Promises Fuel Growth

BOSTON -- According to the newly released Strategy Analytics report, "Liberating the Laptop: 5-Year Market Outlook on PC Cards & Embedded Wireless WAN Connectivity," the market for cellular PC cards and embedded 3G modems for notebook PCs is set to post spectacular 60 percent growth in 2007. The study finds that with WLAN's limitations coming clearly into focus, and truly cost-effective mobile WiMAX still several years out, global 3G/3.5G shipments are set to grow handsomely over the next few years, with annual shipments hitting 15 million units by 2009.

This study concludes that 2007 will be the high-water mark for 3G/3.5G pre-OFDM growth as notebook OEMs begin to ramp up WiMAX in 2008 and 2009 with the help of WiMAX-ready Intel chipsets and baked-in WiMAX support in upcoming Vista Service Packs from Microsoft. Yet, even in the rosiest WiMAX scenario, Strategy Analytics analysts are confident that 3G's long term role as part of a multi-radio, least-cost-routing future is secure as the default subordinate platform to service remote areas outside of cheaper WiMAX or WLAN coverage. This bodes well for 3G in notebooks overall and opens the doors to embedded 3G radio modems as standard equipment over time.

"In the early 3G card market, tech-savvy business users with sufficient need and ability to pay are finding complete freedom from location and the gratification of instant-connections to be addictive." said Cliff Raskind, Director of the Wireless Enterprise Strategies service. "Fast forward a decade and users will come to expect options for boundless connectivity. The notion of having to 'go somewhere' to connect will be as inconvenient as it is for a voice call today. By necessity, to move the market forward, WLAN, 3G and 4G will be unknown to the user and these technologies will work in concert to provide transparent connectivity".

David Kerr, VP of the Global Wireless Practice commented on the relative position of leading players in this arena, "Option Wireless remains a major force in the market, though Sierra has succeeded in turning the ship around in the last 12 months with an impressive (albeit late) portfolio of 3G/3.5G products. Novatel has a solid solution-centric strategy and long term convergence play to avoid commoditization, while Asian vendors, such as Pantech & Curitel, Huawei and ZTE, have shown they will be forces to be reckoned with."

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