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To: Todd N who wrote (47761)5/29/1998 6:49:00 PM
From: Glenn D. Rudolph  Respond to of 61433
 
Cable and ADSL Modem IC Sales to Triple in 1998 Says The Information Network

Business Wire - May 29, 1998 12:08
%INFORMATION-NETWORK ADI BRCM %PENNSYLVANIA %COMPUTERS %ELECTRONICS %COMED V%BW P%BW

NEW TRIPOLI, Pa.--(BUSINESS WIRE)--May 29, 1998--Shipments of ICs for Cable and ADSL modems will increase from $34.7 million in 1997 to $103.2 million in 1998, according to the report High-Speed Modems: Products, Directions, Markets, recently published by The Information Network, a New Tripoli, PA-based market research company.

"Although the V.90 standard for 56K modems has now been established, growth will be overshadowed by the utilization of cable and ADSL modems for Internet connection," notes Dr. Robert N. Castellano, President of The Information Network. "Nevertheless, 56K analog modems will far outsell digital in 1998."

In 1998, 26.4 million V.90 modems will be sold in North America, while only 640,000 cable modems and 730,000 ADSL modems will be sold. Shipments of ISDN modems (terminal adapters) will reach 683,000 in 1998, but stall as availability of cable and ASDL modems becomes more widespread.

As a comparison, V.90 modems are capable of 56 Kbps (56,000 bits per second) while ADSL modems offer speeds of 6 Mbps (6 million bits per second) upstream and 640 Kbps downstream. Cable modems are also capable of 6 Mbps upstream and 768 Mbps downstream. ISDN has only a 2X speed advantage over V.90.

IC manufacturers are keeping pace with changing modem technologies. Companies such as Analog Devices (NYSE:ADI), Broadcom (NASDAQ:BRCM), Cirrus Logic (NASDAQ:CRUS), GlobeSpan, Lucent (NYSE:LU), Motorola (NYSE: MOT), and Texas Instruments (NYSE:TXN) will ship $1.7 billion worth of modem chipsets in 1998.

The Information Network is a leading consulting and market research company addressing the semiconductor, computer, and telecommunications industries.


CONTACT: The Information Network
Dr. Robert N. Castellano, 610/285-4548
Web - theinformationnet.com
E-mail - tin@theinformationnet.com