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Netgear's Lo: High Hopes: Page 4 of 6

CRN: How big is the wireless market?

PL: The total market is probably worth about $2.5 [billion] to $3 billion dollars a year in net revenue. And we see that today as incremental dollars. The replacement of wired networks by wireless LAN hasn't really happened yet. So for VARs, it's a purely incremental dollars today over and above the wired networks. But it also says there is a tremendous new opportunity for them to go into a customer space and recommend [replacing] some of the existing wired networks with wireless networks.

CRN: Do you worry that Netgear is overly associated with wireless products at the expense of the rest of the business?

PL: We don't want people to pigeonhole us as only a wireless LAN player. That's why we keep introducing many new products such as the firewall and switches. For example, just in the month of June, we introduced five new Gbyte switches. And in the first half we introduced a total of ten of those Gbyte switches. The encouraging thing is that we continue to maintain the number one or number two market-share positions in the switch markets that we participate.

CRN: How will wireless networks become easier to manage and secure?