IDC Expects Cable Modems to Conquer Europe
September 2, 1999 - Recent research from International Data Corporation (IDC) reveals that Europe is beginning to see a rapid roll-out of data over cable services. Cable modem equipment vendors are presented with a major growth opportunity as the number of Western European cable modem users is expected to grow exponentially over the 1998-2003 time frame. IDC expects total revenues from cable modem shipments to increase from $33 million in 1998 to nearly $550 million in 2003.
"In 1998, there were selective cable modem service roll-outs by cable operators across Europe. In 1999, a growing number of cable TV networks will be upgraded to accommodate two-way communications, and the demand for cable modems will rise rapidly," said Richard Mol, senior analyst with IDC's European Data Communications research program. "However obstacles to uninhibited growth still remain - cable modem standards as well as the adoption of cable modem services differ widely from country to country. Targeting the right customers with the right message, therefore, is crucial for success."
IDC's study highlights several requirements that next-generation cable modem vendors will have to accommodate in order to succeed:
As the use of new media-rich applications increases, cable modems will need to provide greater bandwidth.
Cable modems will need to become standards-based, or upgradeable to a standard specification. Standards-based products will allow further economies of scale, resulting in lower costs, and will also enable retail distribution. Cost reduction is critical to ensure rapid deployment by operators, especially as cable will increasingly feel competition from digital subscriber line technologies. Cable modem vendors with proprietary solutions in the field will have to provide their customers with a migration path toward standards-based solutions.
Vendors will have to allow for the implementation of multiple services (e.g., voice services such as voice over IP, which means extensive quality of service capabilities) as a way for operators to offer differentiated services and get additional revenues.
IDC's bulletin, Cable Modems Conquer Europe; Western Europe Cable Modem Market Review and Forecast by Country, 1998-2003 (IDC #W19910), contains an overview of the size of the cable modem market from 1998 to 2003 (by country), as well as 1998 vendor market shares, vendor profiles, and a discussion of developments in the cable modem standards area. It is now available to purchase from your local IDC office.
For more information, contact:
Richard Mol
+31 (20) 4089517
r.mol@idcresearch.nl
Mathew Heath
+44 181 987 7107
mheath@idc.com
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