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Nokia Leads Dual-Mode Wi-Fi Phone Sales

Worldwide WiFi phone revenue, though up significantly in 2006, fell 8 percent to $5 billion in 1Q07, according to the latest Infonetics Research market study. However, it's projected to post strong double-digit growth every year through 2010, when it will top $145 billion, as WiFi is incorporated into a growing range of mobile phones.

Enterprises are ramping up adoption of WiFi phones, driven by increased use of wireless LANs and IP PBX technology, while consumers are adopting WiFi phones because of their increasing adoption of broadband connections with wireless and VoIP-enabled customer premise equipment (CPE).

At the same time, operators are launching dual-mode fixed mobile convergence (FMC) services, which will also drive further adoption of WiFi phones.

Infonetics report tracks GSM, W-CDMA, CDMA, and CDMA-2000 mobile phones, smartphones and OS, single mode WiFi VoIP phones split by enterprise vs. consumer, and dual-mode WiFi/cellular handsets split by dual-service vs. seamless. The report includes 2006 market size totals, annual revenue and unit forecasts through 2010, market share detail, and analysis of the mobile and WiFi phone market for all regions.

Other WiFi phone market study highlights include:

- Dual-mode WiFi/cellular phone sales are forecast to grow at a compound annual growth rate of 31 percent from 2006 to 2010, driven by healthy adoption in enterprise and consumer markets.

- Seamless handover FMC phones are expected to represent 35 percent of the dual-mode WiFi/cellular phone market by 2010, vs. 3 percent in 2006.

- Nokia leads in dual-mode WiFi/cellular phone revenue in 2006, ahead of Sony Ericsson and Motorola.

- SpectraLink (Polycom) leads in single-mode WiFi phone revenue market share, significantly ahead of Linksys and Cisco.

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