IDC Reports 32% Growth in Sub-T1 Data/Voice Multiplexer Market
Voice over frame relay will differentiate sub-T1 multiplexers from alternate solutions, says IDC
micom.com
Simi Valley, Calif., September 22, 1995 -- In a recent study, industry analyst firm International Data Corporation (IDC) reports worldwide revenues of $390.5 million in 1994 for the sub-T1 data/voice multiplexer market, a 32% increase over the previous year. The market continues to be driven by the ability of these products to eliminate incremental per-minute charges on phone calls and fax transmissions between company sites.
Through integration, companies with two or more locations can consolidate all data, voice, fax and local area network (LAN) traffic over a single wide-area connection, running at or below T1 (1.544 Mbps) speeds. Because company-wide phone calls and faxes ride toll-free with data and LAN traffic, companies can save thousands of dollars every year in communication expenses.
In 1994, the market for sub-T1 data/voice multiplexers reached $390.5 million on unit shipments of 61,905. Worldwide revenues grew nearly 32% from the previous year and unit shipments increased 47.6%. IDC expects worldwide market revenues to grow at a compound annual growth rate of 13%, and unit shipments to grow 22% through 1999.
This market promises to be very competitive as the products evolve to support new networking technologies, including support for LAN/WAN environments, higher voice compression and frame relay. Noteworthy, IDC reports that demand for frame relay support has increased dramatically over the past 12 months. For many North American companies, using frame relay instead of private leased lines has saved between 30% and 35% on wide-area costs. According to MICOM President and COO Gil Cabral, "We have seen substantial interest from our customers in the ability to send integrated voice, fax, data and LAN traffic over public frame relay."
The study also shows that MICOM Communications Corp.'s (NASDAQ:MICM) share in this market grew from 41.9% to 43.5% in 1994, making MICOM the worldwide market leader for the fourth consecutive year. IDC analyst Curtis Price, author of the July 1995 report, believes that the new ability of MICOM's integration products to support frame relay, announced last month, will enable the company to hold its leading position in the market. PCSI held the second largest share of worldwide revenues with 14.1%.
MICOM has been in this market since 1991 when the company first rolled out its Marathon 5K. Today, with the ability to switch data, voice, fax and LAN traffic simultaneously between multiple locations, MICOM products allow companies to chose public frame relay, private networking using MICOM's MicroBand ATM cell relay technology, or a combination of both, for their transmission protocol. These protocols are standard on MICOM's NetRunner Integration Routers, Marathon Integration Multiplexers and STADIA Integration Hubs.
MICOM Communications Corp. (NASDAQ:MICM) is the worldwide market leader in providing integrated networking solutions under the brand names "Marathon", "NetRunner", "STADIA", "FrameRunner", "MicroBand ATM" and " EasyRouter". MICOM products save companies money by integrating remote data, voice, fax and LAN traffic over private and public networks. Represented by distributors in over 85 countries, MICOM is headquartered at 4100 Los Angeles Avenue, Simi Valley, Calif. 93063, USA. Tel: (805) 583-8600. Fax: (805) 583-1997.
MICOM, NetRunner, Marathon, STADIA, FrameRunner, MicroBand ATM and EasyRouter are registered trademarks or trademarks of MICOM Communications Corp.
Last Modified: December 08, 1995 |
