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WLANs Have Profound Impact on Growing Public 
Area Access Market Reports In-Stat/MDR

    SCOTTSDALE, Ariz., Jan. 15, 2002 - The emergence of wireless connectivity to public area access has largely altered the structure of, and brought renewed attention to, the public area access market, according to Cahners In-Stat/MDR (http://www.instat.com).

    The research firm reports that wireless Local Area Network (WLAN) connectivity has changed the public access market in two principal ways; focus has shifted to the business traveler and delivery of services has evolved into a subscription-based model.

    "While cell phone use has become principally a consumer-oriented product/service, public broadband connectivity, aside from kiosk-based access, continues to be corporate-driven and is targeted to meet the needs of the business traveler," said Amy Cravens, an industry analyst with In-Stat/MDR.

    "Service providers and hardware manufacturers in this space are intently focused on enabling those applications that are most demanded by business travelers and ensuring a level of network security appropriate for the confidential corporate content that will flow over them.

    "Furthermore, while kiosk access is, principally, a pay-as-you-go service, WLAN providers base their revenue model on pre-paid subscription plans."

    Among the drivers most critical to the success of public area WLANs is the corporate adoption of Virtual Private Networks (VPNs), corporate conversion to notebooks, and wireless roaming agreements. In-Stat/MDR believes that while there are barriers that have impeded the success of wireless public access to date, the events of 2001 and 2002 have, and will, move this market toward maturity.

    In-Stat/MDR has also found that:

-- At present, the primary public area access market of interest, for wireless connectivity, is the airport. Convention centers are also being targeted as prime locations for public area access. Other locations, notably cafes, train stations and airplanes, have received considerable attention as emerging wireless locations, yet these arenas are not as fully developed in terms of technology and business models as the airport environment.
-- North America, despite certain regulations and disputes, will remain the predominant public area access market throughout the forecast period. The strength of the North American wireless public access market is largely derived from its corporate culture.
-- Wireless public area access service revenue is expected to grow from $3.9 million in 2001 to $224.7 million in 2005.

    The report, "How Hot Are Hotspots?: The Developing Market for Public Area Access" (No. MU0110SG) explores the markets and technologies driving wireless public area access, in addition to various other segments for public area access. Detailed discussion on each segment's structure is provided in the report, along with five-year subscriber, location, service and hardware forecasts.

    To purchase this report, or for more information, please visit or contact Courtney McEuen at 480/609-4533; cmceuen@instat.com. The report price is $2,995.

    About In-Stat/MDR
    In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products.

    This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end-users.

    In-Stat/MDR is a unit of Cahners Business Information, a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.

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             CONTACT: 
             Cahners In-Stat/MDR
             Amy Cravens (industry analyst), 480/609-4545
             E-mail: acravens@instat.com
                or
             Kirsten Skedd (marketing), 480/609-4534
             E-mail: kskedd@instat.com