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During the last financial year, WLAN was governed by the need for round the clock connectivity for enterprises, irrespective of location. According to V&D estimates, the WLAN equipment market stood at Rs 150 crore in FY '06-07 as against Rs 104 crore in the previous fiscal

Cisco's revenue registered a growth of 46.7% to touch Rs 66 crore, and it retained its number one position. Cisco's major customers were Reliance Communication, Idea, and Infosys. Maintaining and conforming to international security standards were main reasons for Cisco's performance.

D-Link was unchallenged for its second position. It registered revenue of Rs 31 crore, and sold a total of 91,000 units as compared to 40,000 units in FY '05-06. Their major customers were IIT Kanpur, IIT Rorkee, BHU, and Department of Post (AP).

Netgear also retained the third position with an impressive growth of 88.9%, and its revenue was Rs 17 crore.

Dax registered a growth of 50% in its revenue. It introduced outdoor wireless solutions that can deliver up to 45 kms at throughput levels of 20 Mbps and its R&D was in a process of completing the latest 11n standards.

Growth Factors
One key factor that has lead to wireless adoption is growth of the notebook PC and broadband in the small business sector. Small businesses look at WLAN, because it does not restrict a businessman to a limited place, as it can facilitate Internet on a mobile device. Mobility is another important driver for the WLAN equipment market, and the flexibility to access and communicate through the network in public places has resulted in greater adoption of WLAN. Falling prices of notebook PCs, and broadband connectivity have provided further impetus to the growth of wireless in the small business segment. Among the various standards, the dual frequency 802.11g standard has contributed largely to revenues in the WLAN market in 2005. There has also been growth in the number of hot-spot zones across the country, especially in the metros. WLANs have gained popularity in a number of verticals like hospitality industry, academia, and public places.

Hurdles
Wireless LANs are prone to security threats, with increased incidents of unauthorized access, breaking of encryption, and loss of data integrity. Except some of the leading players who have stressed a lot on security concerns, other vendors have not been able to incorporate foolproof security based on accepted security standards. As a result, security continues to be a major hurdle.

Outlook
With small enterprises acknowledging the positive impact WLAN can have on their business, this segment is predicted to grow significantly. Another factor to watch out for is the government's rural connectivity targets, and reduction in prices of mobile devices. Both will increase the subscriber base, which will help this segment grow.

Sandeep Budki
sandeepb@cybermedia.co.in

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