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Wireless LANs, IP Telephony To Boom

Spending on wireless LAN and IP telephony will double in four years, with government spending the most.
Spending on wireless LAN and IP telephony gear is likely to more than double by 2009 in key business segments, according to a report released Thursday by IDC.

The largest spending will be concentrated in the government sector, which accounted for $100 million in wireless LAN equipment and $118 million in IP telephony gear in 2004.

In the IP telephony segment, the market research firm expects to see the fastest growth figures to be recorded in the financial services and retail sectors.

IDC stated, "The increased utilization of IP telephony equipment in the financial services sector will stem from the industry's need to improve performance of networked applications, increase real-time integration of data, and manage convergence."

The research firm also expects the retail industry to boost its use of IP telephony through 2009.

Dan Corsetti, senior analyst in Vertical Market Research at IDC, said users must identify business cases in their respective industries as they rollout wireless LAN configurations. "It will be necessary to identify data-driven, mission-critical applications or even a secondary cost driver besides basic connectivity, such as wireless voice or fixed mobile convergence," Corsetti said in a statement.