Business users will lead wireless data usage and consumer adoption forecast to take off in two years. Either way, wireless Internet usage is on the rise.

by ISP-Planet Staff [October 23, 2001]

According to IDC, the number of wireless subscribers in the United States will increase at a whopping compound annual growth rate (CAGR) of 73 percent, from approximately 5 million in 2000 to more than 84 million in 2005.

Charul Vyas, IDC Wireless and Mobile senior research analyst, said consumer and business users both make up roughly equal pieces of the wireless Internet user base today, but business usage is expected to be higher in the near future.

"Business users will lead the way in wireless adoption as they are usually the early adopters and are willing to pay for services and applications they see valuable," Vyas said. "Businesses tend to introduce new services and devices to their employees first, and mobile employees have a need for highly functional devices with higher speed wireless Internet capabilities."

According to primary IDC research, the number of business wireless Internet users will grow from 2.6 million in 2000 to more than 49 million in 2005. IDC research also finds that consumers are interested in accessing Internet information from their phones or PDAs, which, in turn, should cause consumer adoption to take off.

IDC believes that beginning in 2003, the U.S. market will see significant uptake in wireless Internet services resulting in the following:

Wireless data rates will be faster than landline dial-up rates as carriers roll out their 2.5G and 3G networks.

More functional end-user equipment designed for wireless Internet usage will become available in mass-market quantities in 2003-2004.

The always-on capabilities and stickier applications will drive usage in the coming years.

IDC's comprehensive report on wireless Internet service, U.S. Wireless Internet Subscriber Forecast and Analysis, 2000-2005, looks at the overall growth in the U.S. wireless Internet market. This study examines the growth in the type of network wireless services will be delivered on.

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