ABI Research Finds Multi-Dwelling Units Providing Major Opportunity for Urban DSL Deployment in North America.

NEW YORK -- Multi-Dwelling Units (MDUs) in large North American cities will provide a significant market opportunity for telcos offering DSL-based broadband services, according to a new study from ABI Research.

MDUs - apartment buildings and other large residential blocks - in densely-populated European and Asian cities have been provided with triple-play services over fiber and DSL networks for some time. But North America, with its sprawling suburbs and rural regions, has so far seen less interest in triple-play broadband MDU solutions.

That is starting to change, however, as companies such as Verizon, with a coverage area that includes New York, Boston, and Washington DC, see an opportunity to offer video services to affluent, high-value urban customers via a combination of fiber and VDSL2.

"VDSL2 is a good way for telcos to deliver voice, video, and high-speed data services," says principal analyst Michael Arden, "but it is only viable over short runs of copper wire. Delivering services to the basement of a large building via fiber, and then on to individual dwellings over short lengths of copper, creates a huge potential. They could make real inroads into cable operators' markets."

This also presents a new opportunity for some companies providing equipment to the $3 billion global DSL market. "Many companies that have supplied RBOCs in the past have been North American," notes Arden; "companies such as Lucent and Nortel. They haven't had as much experience in the MDU market as some of their European and Asian counterparts. But now vendors that have been active in this area in Europe and Asia - companies like Hitachi, Alcatel and Siemens - are starting to get more traction." Because they already enjoy significant volumes from their overseas markets, they are able to offer North American telcos a range of products that are competitive on price as well as quality.

To be successful, Arden cautions, fiber/VDSL2 systems must be scalable. "Every MDU is different in size and construction, so a solution that can use whatever kind of fiber and copper is already in place is a key requirement."

The new ABI Research study, "DSL Broadband Services" (http://www.abiresearch.com/products/market_research/DSL_ Broadband_Services), explores the trends driving DSL adoption, regional deployment patterns, the value of the DSL market, and the cost structure of DSL. It forms part of the company's Broadband Networks Research Service (http://www.abiresearch.com/products/service/Broadband_Networks_ Research_Service), which includes a variety of Research Reports and Research Briefs, ABI Insights, and analyst inquiry support.

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Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in broadband and multimedia, RFID & contactless, M2M, wireless connectivity, mobile wireless, transportation, and emerging technologies. For information visit www.abiresearch.com, or call +1.516.624.2500.