Early Market Leaders in ADSL and CABLE Modems Feeling the Heat;
In Q3 1999 According to New In-Stat Report
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nov. 23, 1999--According to a recent report released by Cahners In-Stat Group, worldwide ADSL modem shipments grew 74 percent sequentially in Q3 99, and are expected to top 1.2 million shipments worldwide by the end of 1999.
Cable modems posted stable growth of 27 percent, still out-shipping ADSL modems by two to one.
Cable and DSL services continue to ramp in Q3, broadening availability and introducing new competitors to the market. Early market leaders in ADSL and Cable Modems experienced either negative or flat market share growth in Q3 1999. Alcatel and Cisco, which represented 55 percent of the ADSL modem market in Q3 1998, now total only 36 percent of the market.
While Alcatel still holds the number one position, CPE specialist Efficient Networks claimed the number two position in Q3 1999. This market share shift is indicative of the trend toward specializing in either CO or CPE hardware as the distribution model for DSL diversifies.
Cable modem market leaders, Motorola and Nortel Networks are feeling similar competitive pressure to hold their leadership positions. Today, Motorola and Nortel Networks are still the leaders in cable modem shipments with 27.4 percent and 14.5 percent unit share respectively, significantly down from Q3 1998.
Motorola and Nortel represented 68 percent of cable modem shipments this time last year compared to 42 percent in Q3 1999, demonstrating how the changing dynamics in the cable modem market are shifting share from early market entrants to vendors with experience in high volume consumer products.
"Early market leaders in digital modem shipments are being forced to specialize, partner, and/or acquire if they want to maintain share in this rapidly growing market," said Shannon Pleasant, senior analyst for In-Stat's Voice and Data Communications Group. "As the distribution model for digital modems becomes increasingly diverse, vendors with experience in high volume, low cost, low maintenance products will become a significant threat to those vendors unable to adapt."
The report, Q3 99 Analog and Digital Modem Market Analysis, No. CQ9904M7, provides quarterly market shares for analog, cable and ADSL modem vendors and three quarterly rolling forecasts for those markets. To purchase the report please call 617/630-2139 or visit instat.com .
Cahners In-Stat Group (http://www.cahnersinstat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.
CONTACT: Cahners In-Stat Group Shannon Pleasant, 480/483-4460 email: spleasant@instat.com Christina Hecht, 480/483-4443 email: checht@instat.com www.instat.com
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