Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Fibre (AFCI) ** IPO -- Ignore unavailable to you. Want to Upgrade?

To: Thai Chung who wrote (3157)	3/6/2001 6:11:06 AM
From: Thai Chung	Read Replies (1) \| Respond to of 3299

biz.yahoo.com Tuesday March 6, 6:03 am Eastern Time Press Release New Report by RHK Predicts 71% CAGR for Residential DSL Over the Next Four Years Cable Modems No Longer Dominate the Broadband Market SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--March 6, 2001-- Residential DSL service in North America will grow from 2.2 million users in 2000 to 18.6 million users by 2004, according to a new report by leading telecom market research firm, RHK, Inc. According to the report, Access Network Systems Digital Subscriber Line: North American xDSL Market Forecast, ADSL (asymmetrical digital subscriber line) will capture 50 percent of the residential broadband market by 2004, growing at a CAGR of 71 percent. RHK's new report also examines the SDSL (symmetrical digital subscriber line) market and finds that the SDSL market will grow, but at a slower rate than ADSL. ADSL is the main competitor to cable modems for residential users. At the close of 2000, broadband cable modem users numbered 5.1 million, with ADSL users weighing in at 2.2 million. RHK's report attributes the rapid growth of the residential broadband market to telecommuting, growing availability of multimedia content (e.g. Napster and streaming media) and improving subscriber economics. ``Cable has previously dominated broadband because modems were deployed eighteen months earlier than ADSL technology,'' states Kelly Dougherty, Analyst at RHK, Inc. ``However, we believe that ADSL is a worthy opponent and will gain ground over the next few years.'' Carriers are responding to the strong consumer demand by increasing their DSL footprints. ``In 2000, only 50 percent of homes were eligible for service. SBC's Project Pronto and other carriers' initiatives to serve customers through remote terminals will allow over 70 percent of homes to receive DSL by 2004.'' RHK's new report also examines the role of SDSL in the broadband market. Targeted at the business user, SDSL provides greater bandwidth but has greater distance limitations than ADSL. RHK's report forecasts that the number of SDSL subscribers will increase from 555,000 users in 2000 to 2.6 million users by 2004. SDSL faces competition from established fractional T1 and full-rate T1 services. Incumbent local exchange carriers (ILECs) have significantly lowered the price of T1, thus making them more attractive to business users. The report also finds that carrier equipment purchases increased markedly in 2000, but RHK does not expect this trend to continue. Dougherty states, ``Equipment purchases have outdistanced the number of subscribers. Even with the strong demand for DSL, carriers need to reckon with excess capacity. As a result, the volume of central office based equipment purchases will drop significantly, beginning in 2001.'' RHK's February 2001 report Access Network Systems Digital Subscriber Line: North American xDSL Market Forecast is part of RHK's Access Network Systems service. This service examines the emerging technologies and market forces that drive the broadband market. For more information, please contact Mike Mahan, VP of Sales, at 650/737-9600 or Mike_Mahan@rhk.com. RHK Inc. is a leading global industry market research and consulting firm specializing in the analysis of advanced technologies for the public telecommunications network. The company provides subscription services and custom consulting to technology vendors, service providers, and the investment community in North America, Europe, and the Asia-Pacific region. RHK's areas of expertise include Access Networks, Core and Edge Switching & Routing, Emerging Network Architectures, New Voice Infrastructure, Optical Components, Telecom OS, SONET/SDH, WDM & Optical Networks, and other emerging technologies. RHK is based in South San Francisco. For more information, visit the company's Web site at www.rhk.com. Source: RHK, Inc.