To All:
Channel Up To Speed On V.90 --
Distributors report strong sales of new
modems
techweb.com
----------------------------------------------------------------------
----------------------------------------------------------------------
Channel Up To Speed On V.90 --
Distributors report strong sales of new
modems
By Hailey Lynne Mckeefry
New York -- As the V.90 modem standard nears ratification,
distributors are finding that the channel is well-equipped to handle the
demands of resellers for the newest devices that provide download
speeds of up to 56 Kbits per second and uploads at speeds of up to 33.6
Kbps.
The final version of the standard, expected in September, will be the
death knell for the incompatibility issues and confusion surrounding 56
Kbps modems that have plagued resellers and users alike.
Distributors report that demand for new V.90 modems has been strong
and consistent since the units became available. They agree that
modems are readily available from those manufacturers who are
already shipping product.
Even with of the availability of new V.90 modems, however,
distributors say they feel little concern about being left with older 56
Kbps products. Two older standards will be replaced by the new V.90.
The K56flex standard was co-authored by Lucent Technologies Inc.
and Rockwell International Corp., while the competing X2 standard
was created by U.S. Robotics Inc. and 3Com Corp. The V.90 standard,
which was developed by the International Telecommunication Union,
an international standards organization, will supercede and replace both
X2 and K56flex.
Even if there are older modems left on distributor shelves, most of
them, whether K56flex or X2, can be upgraded with software
downloaded for free from the modem manufacturers' Web sites.
"We have moved out most of the old products," said Jenny Ayala,
senior director of purchasing at distributor Ingram Micro Inc., Santa
Ana, Calif. "In fact, it has been easy to do because all the manufacturers
offered free upgrades to their new products. Sales have been consistent
and good."
Distributors reported an initial spike in demand for the V.90 modems
when unit shipments first became available. "I am seeing a strong push
on V.90 sales for the manufacturers who have them available," said
Tina Fisher, product manager at D&H Distributing Co. Inc., Harrisburg
Pa. "The consensus is that people would rather buy a modem that
incorporates V.90 than do the upgrade via the Web," she said.
The first modem vendors to enter the market include Santa Clara,
Calif.-based 3Com, which started shipping a V.90 and X2 model and
Zoom Telephonics Inc., Boston, which introduced internal
V.90/K56flex modems.
Other manufacturers will quickly join the ranks with new products, and
product shipments will reflect that. Moorpark, Calif.-based
VisionQuest 2000 Inc., a market researcher, estimates the number of
modems shipped each year likely will rise to 75 million by the year
2000, from 50 million in 1997.
Currently, many manufacturers are offering dual-mode modems that
combine support for V.90 and X2 or K56Flex, to answer the concerns
of users until V.90 support is more readily available from Internet
service providers.
"About 95 percent of manufacturers have moved to V.90 standard,"
said Scott Knapp, a buyer at Ingram Micro. "The consumer markets
will migrate to V.90 when the ISPs migrate to the new standard now
and through the next six months."
This means that resellers still need to be aware of which standard the
Internet service provider that its customer will be using supports.
Some manufacturers said they plan to ship modems that support the
older standards until next fall when the standard is finalized, in hopes
of avoiding adding to the number of product SKUs.
----------------------------------------------------------------------
----------------------------------------------------------------------
At 75 million units/year, they can do damn well with 'low margin' products.
If 3Com gets ownership of the modem market, with its 'expertise',
it won't be "just low margin" profits. |
