MIke, Alcatel Reaffirmed by Dell'Oro as Worldwide DSL Market Leader Paris - August 31th, 2000 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that new research by Dell'Oro Group has reaffirmed the company's huge worldwide lead in the ADSL market. Alcatel's ADSL market share as measured by line shipments into central offices during the second quarter of 2000 increased to 54.2%, more than three times that of its nearest competitor. Alcatel has shipped more ADSL lines than all other suppliers combined since volume shipments began in 1998, according to Dell'Oro data.
"In the second quarter of 2000, ADSL continued to be the DSL technology of choice, representing 76% of all DSL lines shipped," said Willem Verbiest, vice president responsible for Alcatel's DSL business. "ADSL continues to grow at the expense of SDSL, and Alcatel is clearly the market and technology leader in that space."
Moreover, Alcatel's cumulative market share increased ten percentage points over the same period last year to 54%, while the share of its nearest competitor declined eleven percentage points to only 13%.
Overall Alcatel shipped more than one million ADSL lines in the second quarter, bringing the total for the year-to-date to 1.8 million. In June of this year Alcatel up-rated its forecast for total DSL shipments in 2000 to 5 million, and these latest market figures put the company on target to achieve that goal.
"The challenge for Alcatel in aggressively growing shipments in the ADSL market has become one of supply, not demand." said Pearse Flynn, president of Alcatel's carrier networking group. "Our order book is huge, and our efforts are shifting so that we can manage our supply chain for the benefit of our many ADSL customers world-wide, in the face of an industry wide components shortage. These figures prove that we can do just that."
Alcatel's market share is fuelled by sales to the world's largest and most successful network operators, most at the beginning of aggressive and large-scale ADSL rollouts. In North America, SBC Communications, Verizon, Bell South, Bell Canada and New Edge Networks are in the vanguard of ADSL deployment. There are an estimated 130 million local copper pairs connecting homes to the telephone network in North America, and each one is potentially a DSL connection. The picture in Europe is as positive. Alcatel's high profile European customers include France Telecom; KPN of the Netherlands; Telefonica of Spain; Telecom Italia; Belgacom; Swisscom; Telekom Austria. In the UK, BT launched its initial broadband portfolio to service providers, corporates and other licensed operators on June 29 this year and yesterday launched its entry-level broadband offering - BT IPStream 500 - using Alcatel's ADSL modem technology. BT's rollout currently covers 35% of UK households, equating to 7.3 million homes and over 1 million businesses.
Kingston Communications, a competitive service provider in the UK market, is currently offering one of the most advanced ADSL-based services in the world. Customers have the option of subscribing to 55 channels of high-quality broadcast digital television, on-demand movies, fast always-on Internet browsing, email and telephony. Kingston's aggressive roll-out plans will move up a gear on the advent of local loop unbundling in Europe.
In Asia Pacific major customers include Singapore Telecom; Telstra of Australia; Shanghai PTA; Hong-Kong Telecom. Hanaro Telecom of Korea is Alcatel's second largest ADSL customer world-wide. South America is also a burgeoning market for ADSL, and last quarter Alcatel shipped to customers in Brazil, Mexico, Argentina and Chile.
Mr. Flynn added: "The textbooks say that when you have more than double the market share of your nearest competitor in a tornado market, you own that market. Alcatel is the 'A' in ADSL."
About Alcatel DSL Alcatel is the world's leading supplier of DSL solutions, helping service providers everywhere deploy an expanded range of revenue producing offerings and applications such as high speed Internet access, voice over DSL, and video services. Alcatel's DSL solutions are available on a variety of service platforms, including the Alcatel 7300 and 7350 ASAM; the Litespan NGDLC; and environmentally hardened DSLAM packages optimized for remote terminal deployment, the Alcatel RAM (Remote Access Multiplexer) and mini-RAM. This complete set of deployment options gives service providers the flexibility to bring DSL service to all potential subscribers in their service areas, regardless of network topology. A unified element management solution, AMS (Access Management System), manages voice and data services for the Litespan and the ASAM product family. The Alcatel 46020 Network Manager, an integrated scalable network management solution, seamlessly manages these products at the network and service layers. Alcatel's DSL technology is also offered in an advanced range of customer premises equipment, the Alcatel Speed Touch" family of DSL modems, routers, and integrated access devices supporting multi-line voice and data service over a single telephone access line. For more information on Alcatel's DSL solutions, visit alcateldsl.com
About Alcatel Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in more than 130 countries.
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