As the Bluetooth SIG Announces its Use of 802.11, Questions Loom About Ultra-Wideband's Future, According to ABI Research

Business Wire, May 15, 2008

SCOTTSDALE, Ariz. -- Members of the Bluetooth SIG (Special Interest Group) announced the development of Bluetooth over 802.11, giving Bluetooth a boost in data rate transfer and helping to quench consumer demand for added speed. Consequently, the UWB (Ultra-Wideband) market worries that this announcement may slow down or even suspend its relationship with Bluetooth; but ABI Research does not believe this will be the case.

Michael Foley, executive director of the Bluetooth SIG, stated, "We're taking classic Bluetooth connections - using Bluetooth protocols, profiles, security, and other architectural elements - and allowing them to jump on top of the already present 802.11 radio, when necessary, to send bulky entertainment data faster. When the speed of 802.11 is overkill, the connection returns to normal operation on a Bluetooth radio for optimal power management and performance."

So where does this leave UWB?

"The Bluetooth SIG's announcement will not have an impact on the timing of the UWB market," says ABI Research senior analyst Douglas McEuen, "as UWB remains set to be delivered as a viable radio to wireless handsets during the 2009/2010 time frame."

Moreover, the utilization of 802.11 is meant to fill a short-term role to the extent that UWB is being developed further, and is expected to be quite common in the future. Additionally, a combined Bluetooth/UWB WiMedia radio effectively opens the door to companies such as Alereon, Wisair, and WiQuest for entry into the Bluetooth market.

The inclusion of 802.11 inside the realm of Bluetooth can only attract more consumers, thereby setting the stage for UWB's implementation to attain its full potential in the coming years.

ABI Research's study Ultra-Wideband Connectivity (http://www.abiresearch.com/products/market_research/UWB) analyzes critical UWB market conditions - from drivers and obstacles to global regulations and standards. Key market semiconductor vendors are profiled, and the study concludes with an in-depth market forecast that tracks both positive and negative market forces numerically.

It forms part of two ABI Research Services: Home Networking (http://www.abiresearch.com/products/service/Home_Networking_ Research_Service)and

Short-Range Wireless (http://www.abiresearch.com/products/service/Short_Range_ Wireless_Research_Service).

ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit www.abiresearch.com, or call 1.516.624.2500.

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