NCR Unveils Wireless Link for Computers : Technology: Analysts say it should be helpful in places where it’s hard to install cables.
NCR Corp. on Monday became the first major computer firm to introduce a wireless computer network that uses radio waves rather than cables to link personal computers.
The new product, dubbed WaveLAN, should prove useful in situations where it’s difficult to install cables, analysts said, but is unlikely to prompt a major shift toward wireless technology.
Like traditional local area networks (LAN), WaveLAN allows many personal computers in an office to communicate with each other and share access to printers and other peripheral equipment. But WaveLAN relies on small radio antennas, rather than cables, to establish the link.
“WaveLAN is the ideal product for the office because it provides the flexibility and freedom to put people and PCs wherever they need to be, without the time and costs required to install or move wired LANs,” Robert James, vice president of NCR’s Cooperative Marketing, said in a statement.
Several small companies have introduced wireless local area networks that use radio transmissions, but they send information at a far slower rate than WaveLAN’s 2 million bits per second. Wireless products that transmit using infrared light are also on the market, but they are subject to interference from office partitions and other fixtures.
The NCR product allows any number of personal computers within a maximum radius of 1,000 feet to be hooked together, without regard to obstacles.
“WaveLAN is an affordable alternative to traditional wired networks, as in many instances cabling costs run up to $500 or even $1,000 per PC,” said James. The product has a suggested price of $1,390 per personal computer and will be shipped in volume from October, and it is compatible with Novell Inc.’s widely used LAN software, called NetWare.
The stock market was unimpressed with the offering, and NCR’s stock on the New York Stock Exchange fell $1 a share to close at $59.50 Monday. Analysts said that while the network set a new standard, it would not appeal to many users.
The company said it would be an ideal system for companies whose work groups change regularly and for firms in old buildings with limited cabling options.
Analysts cautioned that it could be some time before NCR finds a broad market for its product. For now, customers would likely use the system only in factories, warehouses or other sites where it is difficult to run cables under raised flooring, they said.
“It’s a niche market--there are some places where you really can’t run wire,” said Lee Doyle, a consultant with International Data Corp. in Framingham, Mass.
Doyle, who was among the industry consultants briefed, said he did not expect a rush to the wireless technology because it was unlikely to save costs.
The market for wireless LANs accounts for less than 1% of sales of all PC connection systems, Doyle said. An NCR spokeswoman said the company hoped to gain 5% of the LAN market eventually.
Wall Street analysts said the product’s success could also be hampered by NCR’s weak distribution channels.
“It will sell well through their direct sales force,” said Don Young, who tracks the company for Sanford C. Bernstein & Co. “Yet what they really need to make a bigger impact is to build their distribution force.”
