Despite previous surveys suggesting that spending on wireless technology would take a back seat in 2003 as companies focused on core IT issues, new research from market analyst Dell'Oro Group shows that worldwide sales of wireless networking products grew in the first quarter of 2003.

Despite being a seasonally slow period, revenue for wireless networking equipment was $411 million, up 1% from the previous three-month period. Unit shipments for the quarter rose 6 % to 4.8 million, according to the report.

The primary reason for the rise, says Dell'Oro was that a number of 802.11g wireless products began shipping in the quarter. 802.11g is a new specification that transmits data at 54mbps, uses a 2.4GHz band and is compatible with 802.11b equipment. Products based on the technology accounted for 16% of the sector's revenue, and 17% of shipments.

The Dell'Oro Group predicts that for 2003 as a whole, revenue for the wireless networking sector will be $1.9 billion, a 20% increase from last year, and that unit shipments will rise 60%.