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WLANs, which offer data service at speeds comparable to or better than that of anticipated 3G mobile networks, are experiencing explosive growth in the United States. And wireless operators, desperate for ways to increase revenue, may turn to these cost-effective local area networks to supplement their coverage and entice enterprise customers.

When housing developer Del Webb Corp. wanted to find a way to increase the productivity of its field technicians in its Anthem housing development north of Phoenix, the builder turned to wireless local area network technology from Lucent. The reason Del Webb selected WLAN gear is simple: The builder prides itself on superior customer service, and Lucent's WLAN system helps make Del Webb more responsive to repairs and service orders because homeowner requests are forwarded wirelessly to the field technician, eliminating almost all paperwork.

Del Webb certainly isn't alone in its quest for an economical electronic solution to streamline its business. Enterprises across the United States are embracing WLAN technology. According to Allied Business Intelligence, 4.9 million WLAN nodes were shipped worldwide in 2000 and that figure likely will grow to 55.9 million nodes in 2006. The consulting and research firm also says that annual revenue generated from WLAN equipment sales likely will hit about $4.5 billion in 2006, up from $969 million in 2000. And ABI isn't alone in its positive forecast for the WLAN market. Cahners In-Stat, which has the same parent as Wireless Internet Magazine, predicts the WLAN industry will grow to $5.2 billion by 2005, with significant growth potential beyond that.

With revenue figures like these, it's no wonder this fast-growing industry is drawing scores of new players. According to the Wireless LAN Association, the WLAN market is attracting a variety of participants, from startups such as Air2Lan and Colubris Networks to major corporations such as Cisco Systems Inc. and Lucent. The technology's appeal is even catching the attention of wireless carriers, many of which are exploring WLAN technology as a way to economically extend their voice and data coverage to buildings, airports and enterprises with campus environments.

With the slow progression of 3G deployments, some industry insiders see WLANs as a much more cost-effective way for carriers to achieve data speeds of 100 megabits per second. In fact, VoiceStream Wireless in November said it plans to acquire the assests of MobileStar, a bankrupt 802.11b player. Reportedly, many other major U.S. carriers are looking at 802.11b technology, particularly as they try to attract more enterprise customers to their services. "There's no question that people are jumping into this space," says Jeff Abramowitz, executive director of the Wireless LAN Association. "It's one of the fastest growing segments of the wireless industry. The potential is enormous."

For wireless operators looking to WLAN technology as a way to extend their networks or attract enterprise clients, there are different solutions. For example, in October Nokia debuted its Operator Wireless LAN technology, which the company developed in conjunction with Finnish carrier Sonera Corp. Using a subscriber information module and a WLAN card, Sonera's GSM subscribers can log onto a WLAN system and use the network to send data at speeds much faster than most existing mobile wireless networks can offer. In addition, the cost of using the 802.11b connection is added to the subscriber's mobile phone bill.

According to Niklas Lyback, marketing manager for Nokia, Sonera has been using Operator Wireless LAN for about one year, and other carriers, some of which are outside of Europe, are testing the roaming technology. Lyback was hesitant to reveal those carriers due to competitive reasons; however, he did say the company expects other operators to commercially launch the Operator Wireless LAN during the first half of next year. And while this is a breakthrough for wireless-to-WLAN roaming, Lyback acknowledges there are limitations. For example, GSM operators need to form roaming agreements with 802.11 network owners before customers will be able to seamlessly roam between the two networks and have streamlined billing. "The challenge with local area technology is that it's location area technology," Lyback says. "I think with roaming it will take off. Operators will see that they can access this technology and will then make roaming agreements."

But until those agreements are in place, there are other choices for wireless carriers. Incorporating the same philosophy but using a different technology is RadioFrame Networks, a company founded by former McCaw Cellular Communications executive Rob Mechaley. The company has developed a system using software-defined radio that provides 802.11b wireless network coverage in buildings and works with all standard air-interface technologies.

The company is specifically targeting its gear toward wireless carriers and already has signed a deal with Nextel Communications Inc., which is also an investor in the firm through its venture capital division Nextel Ventures. And RadioFrame received funding with Orange Ventures, part of carrier Orange plc. "Across the world, carriers are interested in providing not just 3G, but also high-speed local access … this is a very compelling business model because it gives you the ability to extend your voice services," says Jeff Brown, RadioFrame Networks' president and CEO.

Perhaps even more important than the additional voice capabilities RadioFrame provides is the potential for high-speed data. The system not only expands a carrier's voice coverage, it also lets them offer their customers data service using WLAN technology.

Brown says RadioFrame's units can be easily installed on the wall or ceiling of a building and are designed to cover a 100-foot radius. Depending upon the size of the building and the coverage area, a carrier can add units as needed. "And you don't need to have an RF engineer the system. It figures it out for you," Brown says.

Plus, the equipment will help carriers track subscriber usage when customers are roaming on the RadioFrame system. Brown says the company's gear can track data packets transmitted or user throughput, as well as create call records for the voice network. That information is then transferred to the carrier's billing system so the customer receives only one invoice for both services.

Beyond working out the billing issues, the company also says it is prepared for next-generation network technologies. As carriers migrate to third-generation technology, the company's system can be upgraded and will support multiple standards within the same infrastructure, Brown says.

And with these various wireless-to-WLAN roaming and interoperability solutions rapidly developing, it's likely we will see wireless operators more rigorously explore these alternatives, especially if they want to lure business customers to high-speed data services before their next-generation networks  can support these bandwidth intensive services.