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A recent survey of U.S. early adopters by high-tech market researcher In-Stat found that almost half of those respondents planning to replace their cell phones want Wi-Fi capability. To meet the growing demand, there is an avalanche of dual-mode phones in the pipeline. By the end of this year, the Wi-Fi Alliance will have certified more than 100 different models of Wi-Fi/cellular phones.

“In the years ahead, dual-mode VoIP-capable phone systems will have increasing competition from other technologies, like femtocells for cellular coverage, but widespread Wi-Fi deployment and the variety of Wi-Fi/cellular handsets offers Wi-Fi/cellular-based systems a significant head start in the market,” says Allen Nogee, In-Stat principal analyst. “Other technologies, such as WiMAX and ultrawideband (UWB), are also poised to enter the handset market, but Wi-Fi fills a unique niche that WiMAX and UWB cannot match.”

Recent research by In-Stat found the following:

- Phones supporting voice-over Wi-Fi are limited in numbers today, but will exceed 100 models by year’s end.
- VoIP will be big; the number of Wi-Fi/cellular phones shipped incorporating some form of SIP voice support is forecasted to exceed 50 million by 2011.
- Many of the issues with early Wi-Fi/cellular handsets, such as limited battery life, will be resolved in models released during 2007.

The research, “Worldwide Demand for Wi-Fi/Cellular Combo Phones,” covers the market for dual-mode Wi-Fi/cellular handsets. It includes a description of the players who make Wi-Fi/cellular handsets a reality, a description and pictures of some recent model Wi-Fi/cellular handsets, results of an In-Stat survey about the demand for Wi-Fi in cellular handsets, and worldwide Wi-Fi/cellular forecasts through 2011. These topics paint a clear picture of the Wi-Fi/cellular handset market and identify some of the challenges ahead for this market.