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Technology Stocks : PairGain Technologies

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To: Tim Luke who wrote (29615)3/30/1999 9:59:00 PM
From: John Stichnoth  Read Replies (1) of 36349
 
This from elsewhere. Gives scale to the market:

Alcatel to Lead 1999 ADSL Market, Allied Business Intelligence Says
March 29, 1999 10:59

OYSTER BAY, N.Y., March 29 /PRNewswire/ -- According to a new report by
Allied Business Intelligence, Inc. (Oyster Bay, NY), the entire US market for ADSL
equipment will be $346 million in 1999.
This includes line cards, digital subscriber line access multiplexers (DSLAMs), and
customer premises equipment (CPE). The report, The ADSL Broadband Solution:
Subscribers, Equipment, and Chipsets in the US Market 1998 - 2004, forecasts the US
market for CPE, line cards, DSLAMs, and chipsets from 1998 through 2004.

The three top players in the 1999 US asymmetric digital subscriber line (ADSL)
equipment market will be Alcatel, the Fujitsu Network Communications/ Orckit
Communications alliance, and Cisco Systems.

These three manufacturers are ahead of the pack due to their deals with various major
local exchange carriers (LECs). LECs provide local phone services. Cisco is supplying
CAP-based RADSL gear to US West; FNC/Orckit is supplying gear to GTE; and
Alcatel is supplying gear to BellSouth, Bell Atlantic, Ameritech, and SBC.

Alcatel will have a 39.1 percent share of the US market -- $135 million in sales.
FNC/Orckit will be next, with 24.4 percent or $84 million. Cisco will follow with 19.5
percent or $67 million. Other manufacturers will sell a combined 17.0 percent or $59
million.

However, beginning in 1999 G.Lite equipment enter the market. Since equipment
produced to this standard by different manufacturers is meant to be interoperable, these
leaders will lose many of the
advantages of having supplied the initial rollouts.

ADSL is a means of supplying broadband services over the standard copper
twisted-pair that has provided voice service for many years. Telephone companies are
rolling out ADSL in order to offer a low-priced,broadband service as they race other
providers, such as the cable industry and its cable modems.

Broadband services are being targeted since it increases the revenue per line and per
customer. Since most of the US already receives phone service, the best way to raise
revenues is not by expanding the
customer base, but by increasing revenues per customer.

Allied Business Intelligence, Inc. is an Oyster Bay, NY-based technology research
think-tank specializing in communications and emerging technology markets. ABI
publishes strategic research on the
broadband, wireless, electronics, automation, energy and transportation industries.
Details of these studies can be found at alliedworld.com. Or call
516-624-3113 for more info.

SOURCE Allied Business Intelligence, Inc.

/CONTACT: Mark Liggio of Allied Business Intelligence, 516-624-3113/

/Web site: alliedworld.com

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