Frost & Sullivan - Broadband Video Satisfies the Need for Speed, Sparking Bandwidth Fever
03/15/99 PR Newswire
(Copyright (c) 1999, PR Newswire)
MOUNTAIN VIEW, Calif., March 15 /PRNewswire/ -- In the search for ways to integrate all types of network traffic (voice, data, and video), the demand for an exceedingly fast network transmission is projected to rise, driving the deployment of broadband video. Emerging applications such as distance learning, telemedicine, and surveillance all require high-quality video, adding more fuel to the race for deployment of broadband video.
According to new strategic research from Frost & Sullivan (www.frost.com), U.S. Broadband One-Way Video and Videoconferencing Equipment and Service Markets, the continuing build-up of a fiber network in the United States will help fuel the fever for broadband equipment and services over the forecast period. The recent shift in market dynamics towards asynchronous transfer mode (ATM) is helping to increase the market for broadband video communications. The total market is projected to have a compound annual growth rate (CAGR) of 27.1 percent throughout the forecast period.
For the purposes of this research the market has been divided into two segments, the broadband video equipment market and broadband video services market. The broadband video equipment market covers network infrastructure and video networking equipment.
The competitive situation in this market varies dramatically among the market segments. Within the equipment segment, the switch market is dominated by networking companies, such as Cisco Systems, Nortel Networks, 3Com and Newbridge, as well as ATM-centric companies such as FORE systems and GDC. The video networking market has a variety of players with different backgrounds, with Tektronix leading the two-way codec market while DiviCom is the leader in the one-way codec market.
The broadband video communications services market includes all major interexchange carriers: AT&T, MCI, WorldCom, Sprint and Qwest, as well as local exchange carriers such as, Bell Atlantic, Ameritech, SBC Communications, Bell South and GTE.
"With the exception of services provided to broadcasters, carriers do not focus on specific video applications since video transport is only a small part of their revenues," says Alena Carroll, Frost & Sullivan telecommunications industry analyst. "As video communications continue to grow, it is likely that customers will provide more offerings specifically targeted for broadband video communications in the near future."
The broadband video market continues to evolve, and the competitive structure is likely to change as more players enter the broadband market, particularly on the equipment side. The ongoing industry consolidation is also likely to play a significant part in the competitive environment.
Broadband video has yet to become a mainstream technology and therefore has not received the full attention of the major networking companies and service providers. The adoption rate however, is accelerating, and it is likely that by the turn of the century broadband video deployments will become mainstream.
"For this market to truly explode companies offering ATM equipment or services will need to convince corporate customers to invest in ATM equipment or services. Many potential broadband video users are choosing to wait for an IP-based solution instead," says Carroll. This research, which evaluates a wide range of factors that will impact each of the market segments, can help companies develop a plan of action that will help to maximize their gains in this market.
Frost & Sullivan presents Market Engineering awards to recognize companies that have worked hard to make a positive contribution to the broadband video markets. Winners are selected from an in-depth analysis of the market competitors and interviews with those companies that make up the industry.
Tektronix is selected to receive the 1998 Frost & Sullivan Market Engineering Product Innovation Award. Tektronix has been a pioneer in the interactive broadband video market with installations of its MCS 300 Interactive Video Solution with motion Joint Picture Engineering Group (JPEG) J Series Codec. This solution, deployed over a single fiber optic DS3 circuit, has been deployed in the distance learning networks of about 30 states within the U.S.
The technologies reviewed include ATM, SONET, DWDM, IP, Gigabit Ethernet, IP over ATM, MPEG-2 compression, JPEG, DS3, and video multicasting.
Market participants include: 3Com Corporation, AC&E Ltd., ADC Kentrox, AG Communications Systems Corporation, Alcatel Data Networks, Ameritech Corporation, AMP, Inc., Ascend Communications, AT&T Corporation, BARCO Communications Systems, Bell Atlantic Corporation, BellSouth Corporation, Broadband Networks Inc. (BNI), Cable and Wireless, Inc., Cabletron Systems, Cisco Systems, CompuServe Network Services, Cox Communications, Digital Link Corporation, DiviCom , Inc., ECI Telecom, Electric Lightwave, FORE Systems, Inc., Frontier Corporation, Fujitsu Business Communications Systems, Inc., FVC.COM, General DataComm, Inc., GTE Corporation, Hitachi America, Ltd., Hughes Electronics, IBM Global Network, Intermedia Communications, K-NET Inc., Larscom, Inc., Leitch Inc., Litton Network Access Systems, Lucent Technologies, MCI WorldCom Inc., NDS Americas, Inc., NEC America, Inc., Newbridge Networks Corporation, Nortel Networks, Optibase, Inc., Optivision, Inc., Qwest Communications, SBC Communications, Inc., Scientific-Atlanta Inc., SNET (Southern New England Telephone), Sprint Corporation, Starlight Networks, Starvision Multimedia Corporation, Tektronix, Inc., Tellabs Operations, Inc., US WEST Communications, Vyvx, Inc. and Xing Technology Corporation.
This telecommunications industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the telecommunications market.
Frost & Sullivan is an international marketing consulting and training company that monitors the telecommunications industry for market trends, market measurements and strategies. This ongoing research is utilized to update a series on online research publications such as the CTI & CPE Custom Subscription (www.frost.com/online), and to support industry participants with customized consulting needs.
Visit the Frost & Sullivan web site: frost.com
U.S. Broadband One-Way Video and Videoconferencing Equipment and Service
Markets
Report: 2010-64 Date: March 1999 Price: $2950
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