ADSL Equipment Market Projected to Grow From $103 Million in 1998 to $401 Million by 2002, According to New Report by RHK
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Dec. 12, 1998-- With the expected growth of the Internet and demand for high speed Internet access from the business and consumer markets, network operators in North America are adopting the DSLAM network infrastructure for ensuring the roll out of ADSL over the next five years.
According to RHK's new ''Loop Access Systems: Technology and Markets'' report, deployment of ADSL technology by CLECs and ILECs is occurring due to its ability to cost-effectively deliver high speed data over existing last mile copper loops.
RHK's new report estimates that $100 million will be spent in 1998 to install last mile infrastructure consisting of DSLAMs in more than 1,000 central offices, equipping 231,000 of 559,000 ADSL ports with central-office modems. ADSL rollout is underway and activation of 50,000 subscriber lines is expected in 1998, targeting subscribers who will pay a premium for high-speed Internet and work-at-home access.
''Reaching the mass market is the next major milestone,'' says Claude Romans, senior analyst at RHK and author of the report. ''Equipment interoperability, support systems, and the trained staff required for deploying millions of lines are still missing but we expect these activities to occur within the next 2 years,'' adds Romans.
The report also covers the total market in North America for access systems, which will reach $2.43 billion in 1998. This includes ADSL, DLC, HFC telephony and FITL markets, which will experience compound growth of 17 percent annually through 2002. Most of this growth will be generated by increasing demand for narrowband access technologies, fueled by continued new subscriber growth, second-line growth, and deployments of new services.
''Loop Access Systems: Technology and Markets'' is the first volume in RHK's Loop Access Systems STARTRAX service. The service provides extensive research on telephony access systems and includes analysis of deployment trends; forecasts; regulations; key vendors and service providers.
Ryan Hankin Kent, Inc., is a market research and consulting firm that specializes in analysis of advanced communications technologies and services that affect the public telecommunications network. The company provides syndicated research and custom consulting to technology vendors, service providers, and telecommunications technology investors. RHK is based in South San Francisco. For complete service offerings, please contact Mike Mahan at 650/737-9600 x233. For more information, visit the company's Web site at www.rhk.com.
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