India's wireless equipment sector will grow at a compound annual growth rate (CAGR) of 61.4 percent to exceed US$744 million by 2012, according to a new study released Monday.

Commissioned by Tonse Telecom, in partnership with the Wi-Fi Alliance, the study outlined the emerging Wi-Fi ecosystem in India. The Wi-Fi Alliance is a global, non-profit association--with more than 300 members--that aims to promote the growth of wireless networks.

According to Tonse Telecom, India's combined Wi-Fi market is expected to boom as laptop adoption and broadband penetration around the country increase.

The study predicted that as broadband wireless access grows, the country's WAN (wide area network) network gear sector--which excludes embedded chips--will exceed US$275 million by 2011, up from the current US$23.1 million.

The report also cited future deployments of long-range wireless networks as possible catalysts for the country's accelerated growth in broadband penetration. Tonse Telecom noted that emerging wireless technologies such as WiMax, will help bring broadband connectivity to previously unconnected rural and urban areas in India.

Another key finding in the study pointed to the rise of hybrid dual-mode handsets and communication devices that operate on both cellular and Wi-Fi networks.

An earlier report by analyst house Infonetics Research revealed that dual-mode Wi-Fi handsets are the fastest growing segment in the global mobile market, with a 198 percent CAGR between 2006 and 2010.

According to the Tonse Telecom study, these devices will assist in delivering higher-throughput Internet connectivity to numerous Indian citizens who do not own computers.