ADSL Modems Set to Reach 1 Million Shipments in 1999; Cable Modem Growth Slows In Q2 1999 According to New Cahners In-Stat Group Report.

NEWTON, Mass.--(BUSINESS WIRE)--Aug. 19, 1999--

According to a recent report released by Cahners In-Stat Group, worldwide ADSL modem shipments grew 59 percent sequentially in Q2 99.

This growth is indicative of broadening service roll-outs in the U.S. and internationally. By year-end 1999, modem shipments are expected to top one million.

Alcatel led the market in ADSL modem's shipped with 33 percent worldwide share. Cisco ranked second with 18.7 percent share followed by Orckit with 13.7 percent share.

"While only a few vendors hold the majority share in the ADSL modem market today, the move towards a retail and PC OEM market over the next 12 months will change the vendor line-up considerably," said Shannon Pleasant, senior analyst for Cahners In-Stat's Voice and Data Communications Group. "We are already seeing several new entrants in the cable modem market that are traditional retail players."

Cable modem growth continued to slow to 21 percent sequentially. Based on 1H 99 results, worldwide cable modems shipped in 1999 will reach over 2.6 million, still a considerable lead on ADSL. While overall growth slowed, Cablelabs/DOCSIS based cable modems increased to 19 percent of cable modems shipped in Q2 99, up from 13 percent in Q1 99. This trend is expected to continue as standards based cable modems become available from market leaders Motorola and Nortel Networks in the second half of 1999.

Motorola and Nortel Networks combined held 49 percent of total cable modems shipped in Q2 99. Com 21 ranked third overall with 11 percent unit share. 3Com, General Instruments and Samsung lead in DOCSIS based modem shipments.

The report, Q2 99 Analog and Digital Modem Market Analysis, CQ9903M7, provides quarterly market shares for analog, cable and ADSL modem vendors and three quarterly rolling forecasts for those markets. To purchase the reports please call 617/558-2144.

Cahners In-Stat Group (http://www.cahnersinstat.com) is a high-technology market research firm with comprehensive understanding of computer and convergence, networking, wireless, telecommunications, Internet, enterprise software, and semiconductor market.

Headquartered in Newton, offices are also located in Scottsdale, Ariz. and San Jose, Calif. Cahners In-Stat Group, formed by the merger of In-Stat and Business Research Group, is part of Cahners Business Information, the largest publisher of specialized business publications in the United States, and a division of Reed Elsevier.