To: Boplicity who wrote (140089 ) 8/20/1999 4:29:00 PM From: stockman_scott Respond to of 176387
~OT~ DSL Equipment Revenues Poised to Surge....FYI... <<RARITAN, N.J.--(BUSINESS WIRE)--Aug. 18, 1999--By the start of 2004, digital subscriber lines will have spread, at least in terms of availability, to 70% or more of U.S. homes. Although ISDN will maintain its lead for high-speed data access worldwide over the next five years, and cable modems will continue to enjoy widespread popularity, DSL services and equipment will forge dramatic inroads. The market is changing; for many, that change will be irreversible. According to a report by The PELORUS Group entitled "DSL: New Opportunities And Winning Strategies", xDSL, particularly ADSL, is uniquely positioned today to capitalize on the burgeoning demand for high-speed data access in the residential and small business sectors. Al Fross, President of The PELORUS Group, notes "Alternative technologies, in particular cable modems and fixed wireless, face lengthy, expensive network buildouts before they will provide the kind of wide-scale access to compare with the copper loop plant of incumbent telephone companies. Despite some very real technical problems, much of the copper twisted pair installed base is currently able to support DSL. And upgrading existing wireline networks with DSL technology is a cost-effective way for providers to respond to high-speed data services demand." Fross adds, "The huge pent-up demand for broadband local access services is virtually undisputed. This represents an opportunity of global proportions for both equipment vendors and service providers. The trick is market positioning, as opposed to posturing. Companies must find their own space, occupy their own most appropriate niches. Plan accordingly." According to the report, 1999 has seen a rush of service deployments as competitors move to occupy markets ahead of rivals. Several of the largest markets are expected to have a half dozen or more DSL competitors by the end of 2000. Some newer providers are even bypassing tier 1 markets and pursuing tier 2 and even tier 3 segments. Internationally, large-scale deployments of DSL services are underway in Canada, Europe, and Asia. Worldwide, the xDSL installed base will approach 1.3 million line by year's end. The US market accounts for 70 percent of that. Of the worldwide total, HDSL represents the bulk, 53 percent, followed by ADSL at 43 percent. Equipment revenues will surpass $390 million. By 2004, that figure will have surged to about $1.2 billion. >>