Corporate Use of Wireless Data Services Continues to Grow, Despite Industry Downturn According to In-Stat/MDR

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Corporate Use of Wireless Data Services Continues to Grow,
Despite Industry Downturn According to In-Stat/MDR

SCOTTSDALE, Ariz., March 5, 2002 - In-Stat/MDR (www.instat.com) expects the number of business wireless data users to grow from 6.6 million at the end of 2001, to more than 39 million in 2006.

Although there is activity in the consumer market, the business segment (including SOHO, small, medium and large companies) is currently, and will remain, the largest group of wireless data services users throughout this timeframe.

The high-tech market research firm projects that the increase in business subscribers will result in improved service revenues to wireless data carriers with revenues derived from the United States business market growing from $4 billion in year-end 2001, to more than $16 billion by year-end 2006.

According to Becky Diercks, director of wireless research at In-Stat/MDR, "While there are many trends driving wireless data usage in corporations, including the increase in mobile workers and potential productivity gains, there continue to be many drawbacks. In a recent survey, IT respondents cited geographic coverage and reliability of connections as primary inhibitors to adoption."

Security is also of major concern. Despite these barriers, many companies are now assessing strategies to provide wireless access to corporate computers and networks.

"This is not a simple undertaking. These companies must identify which applications, devices and services to use and whether to use an in-house, licensed software solution, or a hosted, Wireless Application Service Provider (W-ASP) model, or some combination of the two."

This, and the industry down-turn after the events of Sept. 11, 2001, have resulted in a current lull in enterprise adoption of wireless data services, during a period of time in which rapid industry expansion was expected. While growing today, the market will pick up more dramatically in 2003.

In-Stat/MDR also found that:

--	Historically, industry-specific applications have driven the market for wireless data, which is why the market has not grown very rapidly. Today, however, horizontal applications that can be used across industries, especially e-mail, are leading the charge in this market.
--	Approximately 23 percent of workers in medium and large businesses are considered mobile; that is, they spend 20 percent or more of their time away from the office or campus environment.
--	Whether choosing an in-house or outsourced solution, respondents to In-Stat/MDR's recent survey agree that price and reliability/dependability/stability are the key factors that will help them choose a wireless ASP or licensed solution provider.

The report, "Wireless Data Adoption in the Enterprise" (#IN020426MD), provides information on many of the issues surrounding wireless data implementation in the business environment. This report reviews barriers and benefits to implementation, and information on applications, services, and devices planned as part of their wireless data solution.

Wireless data business subscriber and service revenue forecasts are included. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/cat-md.htm or contact Erin McKeighan; emckeighan@instat.com at 480/609-4551. The report price is $2,995 USD.

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:
              In-Stat/MDR
            Becky Diercks, 617/558-4748
            E-mail: rdiercks@instat.com

              Janine Pragit, 480/609-4548
            E-mail: jpragit@instat.com