Infrared Wireless Networking uses infrared beams to send data transmissions between devices. Infrared wireless networking offers higher transmission rates, reaching 10Mbps to 16Mbps.
As expected, infrared light beams cannot penetrate objects; therefore, the signal is disrupted when something blocks the light. Infrared can be either a directed (line-of-sight) or diffuse technology. A directed infrared system provides a limited range of approximately 3 feet and typically is used for personal area networks. Diffused infrared can travel farther and is more difficult to block with a signal object. Diffused infrared wireless LAN systems do not require line of sight, but usable distance is limited to room distances.
Infrared provides a secure, low-cost, convenient cable-replacement technology. It is well suited for many specific applications and environments.
Source: Infrared Wireless Networking