Wi-Fi or wireless fidelity uses radio technologies IEEE 802.11 or 802.11a to provide reliable, fast wireless connectivity to check e-mails, retrieve files, search the Web or send instant messages via Wi-Fi-enabled computers with a PC card or similar device.

Digital images, games, ring tones and music are increasing the demand for Wi-Fi, Wi-MAX and 3G technologies, CEA analyst Sean Wargo notes. The question is: Will 3G or Wi-Fi be better? “There’s no answer yet,” he admits.

The Wi-Fi Alliance is working on answering that question. The organization is exploring various 802.11n baseline proposals, one of which should be ready for ratification next year. It would specify very high throughput rates within the home or office.

The alliance also is working out details that enable 802.11 equipment to work together with external cellular, Wi-MAX or other types of wireless networks, according to a Wireless Week report. Predictions from several executives, says Rajeev Chand, senior equity analyst for wireless research at Rutberg & Company Research, are that 10 percent of the handsets shipped three to four years from now will have embedded Wi-Fi.

	Family Radio Service Devices Sales to Dealers
	Unit Sales (Thousands)	Dollar Sales (Millions)	Average Unit Price
2000	11,942	418	35
2001	15,382	461	30
2002	12,558	251	20
2003	13,060	235	18
2004	12,550	201	16
2005p	12,000	168	14

 

Source: CEA Market Research, 1/05

Nortel and LG Electronics announced they will develop Wi-MAX solutions based on the 802.16 standard networking specification, with customer trials beginning the second half of 2006. Later this year, Intel plans on jumping into Wi-MAX, based on its silicon products.