Cisco remains the market leader in the booming $43 million wireless LAN market which is set to move from the corporate space to the home.
Market analysts IDC Australia claim one-fifth of businesses already use a WLAN and their usage is spilling into public areas. The WLAN boom has also been boosted by the recent IEEE approval of a new 801.11g standard.
IDC Australia senior analyst, Warren Chaisatien, said the hotspot market remained nascent. Service providers were still in a land grab mode with very little revenue to go round.
"Coverage, pricing, roaming and billing issues as well as security concerns have been identified as inhibitors to the adoption of public WLAN service," he said.
However, the proliferation of WiFi-ready devices, the embracing of enterprise mobility by business and of the digital home concept by consumers, coupled with the falling price of WLAN gear and broadband connections, will keep the Australian WLAN market momentum going.
IDC said cellular carriers could best take advantage of WLAN and hotspot market opportunities by helping companies with corporate WLAN initiatives and offering hotspot as a complementary service.
DSL and cable mobile service providers could bundle hotspot with their consumer high-speed Internet access offerings.