Report: Wireless-DSL Feature Is Catching On

Embedding wireless-LAN capability in DSL customer-premises equipment (CPE) is catching on, with the feature expected to be included in 10 to 15 percent of DSL CPE shipments by the end of the year, according to a new market-research report.

"This is a significant percentage, considering 2003 levels were close to zero percent," said Tam Dell'Oro in a statement. "This uptake of embedded wireless LAN by the telecom service providers reflects their eagerness to experiment with different services to please the customer." She noted that 800,000 units were shipped in the first quarter. In recent weeks, Qwest and Verizon Communications have been offering the wireless capability to subscribers.

Dell'Oro, founder of the Dell'Oro Group, said the largest suppliers of the DSL gear equipped with the wireless feature include Siemens, ZyXEL, and 2Wire. She said the feature is catching on in U.S. and European markets. Dell'Oro said 2Wire and ZyXEL led the market, in first and second place, respectively. Siemens is experiencing the most rapid percentage growth, she added.

Earlier this week, the Leichtman Research Group announced that network additions of DSL by U.S. telephone-service providers was 1.17 million in the first quarter.