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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: djane who wrote (52313)	8/19/1998 2:36:00 AM
From: djane	Read Replies (1) \| Respond to of 61433

U.S. xDSL market growing at rapid clip, says new report pubs.cmpnet.com A service of Semiconductor Business News, CMP Media Inc. Story posted at 8:45 a.m. EDT/5:45 a.m. PDT, 8/17/98 SUNNYVALE, Calif. -- Digital subscriber line phone service, such as asymmetric DSL and other versions of xDSL, is rapidly spreading in the United States as local telephone operating companies push hard to head off the growth of cable modems, according to a new market report by Multimedia Research Group Inc. here. By the middle of 1999, incumbent local exchange carriers--such as Ameritech, Bell Atlantic, BellSouth, GTE, and US West--plan to deploy xDSL services in hundreds of central offices, which will make the technology available to about 40 million phone lines, based on Multimedia Research's estimates. That total will represent 25% of the 160 million phone lines in the country, said the market research firm. The xDSL market represents a potential $1 billion chip set market in the next five years because it will enable personal computers and Internet devices to communicate over standard copper phone lines at up to 200 times the speed of today's analog modems (see feature from March issue of SBN). The xDSL market also includes equipment for central telephone offices, which will result in system revenues of $735 million in 2002, said the Multimedia Research's report. "No single xDSL solution fits all markets," said analyst Bob Larribeau of the research firm. "We're forecasting a large growth, but we have found significantly different levels of opportunity [for the carriers]." It is also becoming more difficult for central office equipment suppliers to break into the U.S. market now that many carriers have selected their vendors following field trials in 1996 and 1997, according to Multimedia Research. Paris-based Alcatel Alsthom, for example, has apparently captured more than one-third of the business potential in U.S. central equipment markets by winning accounts with incumbent local exchange carriers, according to the research firm.