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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (14572)	11/15/1999 12:42:00 PM
From: Ian@SI	Read Replies (2) \| Respond to of 18016

Extract from a Briefing.com report on the AEA conference: another driver of ATM growth. ++++++++ ...Video Conferencing Market The video conferencing business is currently a $5 billion annual marketplace. Primarily video conferencing is done using dedicated ISDN lines between two known parties. The video conference service is sold to the corporate client by a telecom carrier. Most of the companies in this business sell hardware, software, and services to the telecom companies. The existing video conferencing market is big, but not growing. There are roughly 200,000 "endpoints" installed throughout corporate America. The potential of internet based video conferencing stands to grow the potential use of video conferencing. Current "endpoints" cost as much as $40,000 to install. PC based video cameras on the net, which will provide the internet "endpoint," cost as little as $1,000. Nevertheless, the size of the video conferencing market does explain why telecom companies have never actively marketed ISDN to the "masses." ISDN has been quite profitable in this concentrated market. Video conferencing companies now see that the web poses both great opportunity, and great risk, to the existing video conferencing market. Video conferencing capabilities over dedicated ISDN lines cost approximately $30 an hour to a client, per endpoint, in addition to leasing the ISDN line. Video conferencing capabilities over an IP network are expected to reduce these operational costs by more than 75%, as well as eliminate the cost of the dedicated line. In addition, the internet provides a broadcast capability not possible with current dedicated endpoints. The video conferencing market over ATM protocol is expected to be $6 billion in 2002, with a 21% CAGR. Over the IP protocol, the market is expected to be $1.5 billion in 2002 growing to $2 billion in 2002. ...