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To: Kent Rattey who wrote (3795)1/4/2000 10:43:00 PM
From: Kent Rattey  Read Replies (1) | Respond to of 24042
 
lw.pennwellnet.com

TIA/MMTA issues Market Review and
Forecast for year 2000

By Susan Fogarty, Online Editor
The herald of the new year means the distribution of the
highly regarded MultiMedia Telecommunications Market
Review and Forecast. Produced jointly by the
Telecommunications Industry Association (TIA) and its
subsidiary, the MultiMedia Telecommunications Association
(MMTA), both of Arlington, VA, this year's report predicts
that while long-haul fiber deployment will soon begin to
slow down, extreme growth will occur in the markets for
transport equipment and residential access.

The 2000 MultiMedia Telecommunications Market Review
and Forecast analyzes technology, trends, and market
conditions for communications topics ranging from network
services and convergent technologies to wireless
communications and computer-telephone integration. Upon
examination of market for optical cables and equipment, it
notes that spending has almost tripled in the last decade,
growing from $4.1 billion in 1990 to $14.6 billion in 1999.

The report predicts that spending on fiber cable "will peak
in 2000 at $2.7 billion before receding somewhat to $2.2
billion in 2002 and 2003 as the new network deployments
are completed." Although there will continue to be
increased demand for bandwidth, less fiber will be installed
to meet demand because networks will have extra capacity
built in. The development of advanced transport equipment
also will require less fiber to transmit increasing amounts of
traffic. Spending on transport equipment is expected to rise
annually by 23.1% over the next five years, from $12.2
billion in 1999 to $28 billion in 2003, says the report.

While the report predicts that installation in long-haul
networks will decline after 2000, the amount of fiber
installed in business and residential environments should
increase. According to the Review and Forecast, "The
biggest increase in the deployment of fiber will be in the
residential access area, where fiber in the loop and fiber to
the curb are expected to drive the demand. Fiber
deployment for residential access is projected to increase
from 515,000 km in 1999 to 3.5 million km in 2003, exhibiting
a compound annual growth rate of over 61%. In 2003, the
residential access market is projected to comprise 14.9% of
total fiber installations, up from only 2.7% in 1999."

The largest dollar-value equipment category for the overall
market in 1999 was voice/data enterprise equipment, which
totaled $75.8 billion, an 11.5% increase over 1998.
Double-digit increases also were recorded for Ethernet
switches, network-management equipment, routers, and
operating systems. Asynchronous Transfer Mode,
Integrated Services Digital Network, and frame relay
equipment also posted double-digit gains.

The overall U.S. telecommunications market (equipment and
services) grew by more than 11.4% in 1999, generating
revenues of $517.6 billion. Spending on telecom equipment
continued its double-digit growth by recording an 11.5%
increase over 1998 to reach $135.4 billion. Growth for
transport services posted an 8.5% increase to $252 billion,
and support services experienced a 17.3% increase to $138
billion. The fastest-growing equipment categories of 1999
included computer-telephone-integration hardware and
software (up 66.2% from 1998); groupware (up 31.8%);
videoconferencing equipment (up 14.3%); and network
equipment and facilities (up 12.7%).

For more information or to order a copy of the 2000
MultiMedia Telecommunications Market Review and
Forecast, call (703) 907-7472 or visit www.mmta.org.