Re: DSL Chip Sales - Alcatel's(sym:ALA) Lead
Thread,
I found this article a few weeks ago, but never got around to posting it. Sorry I can't remember where I found it. Apparently from the stated figures, DSL rollouts are really neck-neck with cable modem.
MikeM(From Florida)
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Six Million DSL chips in 1999 for One Million customers?
Alcatel leads with 2.4 Million
The industry is skeptical of the chipmakers' claims, because the published figures suggest deployment to date of fewer than half a million lines. Alcatel 2.4M lead, with Conexant, Globespan, and ADI all over a million, therefore raised eyebrows in the industry. DSL Prime's research confirms the accuracy of these figures, however.
Actual subscribers by the end of the year will be about 700K in the US, and worldwide should cross 1.5M in the first quarter of next year, as these chips go into equipment. That explains 3M chips (one for the customer, one for the central office), and the balance is accounted for by the common industry practice of installing multiple line cards in advance of demand, with several hundred lines being commonly installed with the DSLAM. This ties up some capital, but saves the labor cost of a repeat visit to the CO.
Pierre Garnier of Alcatel confirmed to us that sales accelerated in third and fourth quarters, and that customer projections for 2000 are even higher. DSL has becoming the driving engine for Alcatel worldwide. |
