Guaranteeing low latency and heightened security has been a major challenge for voice over wireless LAN (VoWLAN) vendors. Additionally, customers are demanding seamless roaming between networks to prevent the incidence of dropped calls. Vendors are hoping that the 802.11 wireless standards that ensure quality of service, security, and fast roaming will address the technical limitations of VoWLAN and increase customer confidence. While the 802.11i standard for security issues is already in place, others are still awaiting authorization compelling some vendors to develop their own proprietary solutions to work around the delay. Since VoWLAN is already generating interest among customers with its ability to provide flexibility, higher throughput, and substantially lower operating costs, the approval of the 802.11 standards is likely to propel its growth into the future.

This Frost & Sullivan research outlines the key growth challenges, drivers and restraints in the VoWLAN market, and the strategies followed by vendors to combat these challenges. It also identifies the market segments that vendors should target in the enterprise and consumer space.

VoWLAN Popularity in Niche Markets Widening its Reach into Other Sectors

VoWLAN has shown a surge in popularity in select verticals such as healthcare, hospitality, retail, education, and warehousing where mobility of employees is vital in order to maintain high productivity levels. "The success achieved by these early adopters has prompted companies from other sectors to take a good look at how VoWLAN can change the way they do business and enhance profitability," says the analyst.

In the retail industry, the deployment of VoWLAN has shown a marked reduction in equipment costs and wireless phone service charges. It is also likely to enhance customer service as a result of streamlined communications. In hospitals, VoWLAN vendors have successfully leveraged the existing WLAN network to support instant mobile voice communications and messaging. The potential benefits in this vertical also include time savings, faster communication, improved workflow, and ultimately quality patient care.

Immense Growth Potential in the VoWLAN Client Device Market

Phenomenal growth is expected in the VoWLAN client device segment with the emergence of dual-mode cellular/VoWLAN handsets that provide a cost-effective calling option for cellular users. Apart from handset, soft-phone, and communication badge makers, the mobile carriers have also moved in to demonstrate their increasing interest in this lucrative market. "Despite initial resistance, traditional mobile carriers are likely to see dual-mode cellular/VoWLAN handsets as a means to differentiate their offerings through decreased calling costs and elimination of long-distance charges," explains the analyst.

In addition to the reduced calling costs, the dual-mode cellular/VoWLAN handsets signify overlapping of customers with the VoWLAN vendors which is likely to result in a significant loss in revenue for traditional carriers. Strategic alliances between the vendors and carriers are expected to play a key role in reducing customer churn and retaining profitability on both sides.