$5.2 bln will be spent on Wi-Fi, $115 mln on WiMAX in 2005

Telecommunications Industry Association (TIA) announced that 2005 Wi-Fi and WiMAX infrastructure revenues for the US are forecast to hit $5.2 bln and $115 mln respectively. Wi-Fi market will continue to grow as the number of hot spots proliferate, and the emerging WiMAX equipment market would also add to growth over the next few years.

TIA expects revenues from spending on Wi-Fi/WiMAX capital expenditures in the US to hit an estimated $22.3 bln in 2005, rising to $29.3 bln by 2008, a compound annual gain of 7.1%. Spending on support services for wireless infrastructure like professional services, depot repair and logistics increased by 13.6% in 2004, up from the 31.8% drop in 2003. Spending on Wi-Fi services in the US reached $21 mln in 2004 and the TIA expected this to increase to $45 mln in 2005 rising at 99.9% CAGR to us$335 mln by 2008. Spending on Wi-Fi equipment in the US in 2004 increased by 31.8% to $4.35 bln. By 2008 the TIA expects spending on Wi-Fi infrastructure equipment to total $7 bln in 2008, a 12.6% compound annual increase.

The number of US Wi-Fi hotspots increased from 3,400 in 2002 to 21,500 in 2004. The TIA expects the number of Wi-Fi hotspots to rise from 32,800 this year to 64,200 in 2008, rising at 31.5% CAGR. The TIA said it expected spending on WiMAX infrastructure in the US to increase dramatically over the coming few years, growing 666.7% from $15 mln in 2004 to $115 mln in 2005, then rising further to $290 mln by 2008, growing at 109.7% CAGR.