World Enterprise VoWLAN Single-mode and DECT Phone Markets

Reliability of DECT and VoWLAN Helps them Survive the Influx of New Enterprise Communication Devices and the Economic Downturn

The world enterprise DECT and voice over wireless local area network (VoWLAN) single-mode phone market, like most technology markets, has been seriously hit by the global economic slowdown. The market remained almost flat in 2008 and is expected to decline further in 2009. It is, however, expected to begin to recover in 2010 and experience more significant growth in 2011. The market is also feeling the heat of the competition from other types of mobile technologies such as advanced smartphones with built-in enterprise fixed mobile convergence (FMC) solutions. The threat from these solutions is very real since they frequently present a compelling value proposition to IT departments seeking to provide employees with a single device offering multiple capabilities. Moreover, the DECT market has to battle the perception of being an outdated and primarily consumer-centric technology. Participants will also have to address numerous other challenges including channel education, product evolution, quality and security, interoperability with wired and wireless systems, and the slow ratification of standards.

Despite these issues, DECT and VoWLAN single-mode vendors can still stay afloat if they launch aggressive global campaigns aimed at promoting the various benefits and capabilities of their on-site mobility solutions. Competition from enterprise FMC solutions will most likely remain limited in the near term until users become more familiar with the value of these nascent technologies. Therefore, enterprises are likely to continue to deploy the more reliable DECT devices or the mature single-mode VoWLAN handsets.

Frost & Sullivan expects technologies such as IP DECT and SIP DECT to drive further DECT adoption, while voice-ready WLAN infrastructure implementations across verticals and regions will keep the VoWLAN single-mode market buoyant. Besides, most of VoWLAN's basic challenges have been resolved through continuous improvements in handset capabilities, wireless standards, as well as partnerships among device vendors, IP telephony providers, and WLAN infrastructure companies. Meanwhile, many major DECT phone manufacturers have launched innovative advanced DECT handsets. "New handset capabilities include enhanced interfaces, additional software functions, novel form factors (smartphone-resembling devices), improved device durability, integration with advanced messaging and alarming systems, push-to-talk, location-based features, and centralized management capabilities," says the analyst of this research. "Many DECT participants affirm that the new capabilities offered by DECT technologies equal or even surpass those offered by VoWLAN single-mode devices."

Growing enterprise WLAN and IP telephony penetration will boost adoption of both DECT and VoWLAN solutions. On-site mobility vendors could further expand their growth opportunities within the DECT and VoWLAN single-mode market by focusing on key verticals. They need to monitor specific vertical requirements in terms of on-site mobility solutions and identify potentially lucrative verticals. "Vendors have to strive to provide evidence of cost savings and productivity gains through success case studies and end-user surveys," notes the analyst. "They should strategize for the current economic conditions by offering different payment options when launching or presenting an FMC offering." They can also gain a distinct competitive edge by providing vertically tailored application support and integrations.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Unified communications
• Enterprise communications
• Mobile and wireless

Technologies

The following technologies are covered in this research:

• DECT/IP DECT/SIP DECT 6.0/ISDN DECT
• VoWi-Fi
• VoWLAN
• Mobile UC Technologies
• CAT-IQ