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To: Frank A. Coluccio who wrote (4268)6/21/1999 2:31:00 PM
From: Kenneth E. Phillipps  Respond to of 12823
 
The Market for Carrier Convergence Packet Switches Takes Shape

The market has already seen two acquisitions and one significant customer win, before those vendors' products have even
been released for general availability.


Can anybody comment on the identity of the "two acquisitions and one significant customer win."

Ken

go2net.newsalert.com

PR Newswire - June 21, 1999 13:46

BOSTON, June 21 /PRNewswire/ -- A recent study by the Yankee Group forecasts that the market for Carrier Convergence Packet Switches, a new breed of equipment that is the key to unlocking
voice/data convergence in next- generation networks, will reach $15 million by the end of this year, and grow to $687 million by 2003. The report, entitled "Faster Growth, New Entrants, and Obstacles
Galore Characterize the Fledgling CCPS Market," assesses the competitive environment that surrounds these carrier-grade devices designed to smoothly transition a service provider's circuit-switched voice traffic to packet-switched voice traffic.

"The days of 'Big Iron' are over for competitive service providers," says Christin Flynn, Analyst for the Yankee Group's Data Communications Practice. "The CCPS products enable a service provider to deliver new voice and data integrated services to their customers with a faster time-to-market, lower price point and smaller footprint than traditional voice switches".

The Yankee Group believes that there is a growing demand for CCPS, especially among the CLECs, but the vendors will face considerable challenges along the way. Technology differentiators will dictate a vendor's initial success or failure in a specific service provider's network, but ultimately distribution channels, partnerships, and acquisitions will determine which vendors' products last for the long term.

The market has already seen two acquisitions and one significant customer win, before those vendors' products have even been released for general availability. In addition, large, incumbent equipment vendors have since released similar products or migration paths for their existing equipment, in efforts to keep up with the aggressive solutions created by the CCPS vendors. These events validate the market need for the CCPS products, and The Yankee Group expects to see more acquisitions and strategic partnerships to be announced before the end of 1999.

About the Yankee Group

The Yankee Group, a subsidiary of Primark Corporation, is an internationally recognized leader in IT research and advisory services, focusing on strategic planning assistance, technology forecasting, and IT industry analysis. The company provides assessments and strategic advice on the Internet,
communications, and computing industries for a wide range of end-user and vendor businesses from numerous industries. The Yankee Group specializes in helping their clients develop technology initiatives that are in synergy with their core business strategies. Established in Boston, Mass. in 1970as the industry's first research and advisory services firm, The Yankee Group has built a solid
reputation worldwide for its penetrating analysis of key information technology issues and the personalized one-to-one service provided by its analysts to all their clients. Additional information is
available at ( yankeegroup.com ).

Primark Corporation (NYSE: PMK; PSE) is a global information services organization headquartered in Waltham, Massachusetts. Primark provides financial, economic, and market research information services to the financial, corporate and government markets. Additional information is available at (
primark.com ).

SOURCE Yankee Group

/CONTACT: Kim Vranas of The Yankee Group, 617-880-0214,
kvranas@yankeegroup.com/