I just posted this to the ASND thread.
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Accelerated Spending on Telecommunications Infrastructure Causes Boom in Industry, Says New Piper Jaffray Research Report
Business Wire - March 24, 1998 13:11
MINNEAPOLIS--(BUSINESS WIRE)--March 24, 1998--Telecommunications service providers and businesses will spend more than $60 billion on Network Infrastructure Equipment by the year 2000, according to Conrad Leifur, senior research analyst at Piper Jaffray Inc. That's one of the conclusions Leifur draws in his report, "Telecommunications Equipment: Network Infrastructure" released today.
The 72-page document explores two themes that are expected to drive industry growth: demand for high bandwidth data services and service provider competition.
Some of the report's most significant findings include:
-- Data traffic is growing at 4-5 times the rate of voice
traffic, causing service providers to spend increasing
portions of their capital budgets on the resulting
bottlenecks in the access and backbone portions of the
network, as well as in data network overlays;
-- Longer term, the Internet will evolve into a multiservice
network and will be able to carry delay-sensitive traffic
like voice and video through the use of ATM (asynchronous
transfer mode) or enhanced versions of IP (Internet
protocol);
-- ADSL (asymmetric digital subscriber line) represents the
solution to the access network bottleneck and will begin to
be deployed in meaningful volumes in 1998 after five years
of hype. A standardized, low cost ADSL providing download
speeds of over 1 megabit per second will become available in
1999; as a result, over 1 million ADSL lines are expected to
be installed by 2000. Over time, ADSL will upgrade and
replace analog modems, creating multibillion dollar
opportunities for ADSL central office equipment and ADSL
modems;
-- CLECs (competitive local exchange carriers) represent a
significant new customer segment for telecommunications
equipment vendors, having raised $14 billion since the
Telecommunications Act of 1996 was signed. CLECs will spend
$3 billion on capital expenditures in 1998, about equivalent
to one RBOC.
Please contact your Piper Jaffray representative for a copy of the 72-page Telecommunications Equipment: Network Infrastructure report. If you would like more information about receiving a report, call 612/342-8850.
Founded in 1895, Piper Jaffray Companies Inc. has become one of the nation's premier full-service investment firms. Piper Jaffray Inc.'s Equity Capital Markets business has grown exponentially in the last several years by focusing on the needs of growth companies in the healthcare, technology, financial, consumer and industrial growth sectors. The firm's Equity Research department employs more than 50 research analysts and associates who cover nearly 300 companies. Piper Jaffray Inc. also has built a reputation for its expertise in Fixed Income Capital Markets and its retail brokerage unit. Other subsidiaries of parent company Piper Jaffray Companies Inc. include Piper Capital Management Incorporated, Piper Trust Company and Piper Jaffray Ventures. Piper Jaffray Inc. is a member of SIPC, the New York Stock Exchange and other major stock exchanges. For more information, visit our Web site at piperjaffray.com. >>> |
