Access Market Expected to Reach $15 Billion in 2004 According to Dell'Oro Group; Access Equipment Market Sales Surge but Saturation of Serviceable Customers May Limit Growth in the Near Term.Business Editors PORTOLA VALLEY, Calif.--(BUSINESS WIRE)--May 3, 2000 According to the Dell'Oro Group's Routers, Access & Voice 5-Year Forecast, published late last week, the Access Market will reach $15 Billion in 2004. Dell'Oro Group forecasts that in the year 2000, shipments of Cable and ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line Customer Premise Equipment (CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment ) will increase 200% and 500% respectively over 1999 levels (to 6.7M and 5.5M units respectively). However, Dell'Oro Group projects that there will be a slowdown in penetration as Service Providers saturate sat·u·rate v. Abbr. sat. 1. To imbue or impregnate thoroughly. 2. To soak, fill, or load to capacity. 3. To cause a substance to unite with the greatest possible amount of another substance. the "serviceable" household market. "There are only so many end users that can subscribe to Cable and DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary due to the lack of infrastructure in the neighborhood," says Tam Dell'Oro, Founder of Dell'Oro Group. "In order to achieve higher penetration rates into the household market over time, the infrastructure needs to be upgraded and/or installed further into the neighborhoods." Last October, SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. announced Project Pronto pron·to adv. Informal Without delay; quickly. [Spanish, from Latin pr  mptus; see prompt. , a $6 Billion effort to
install a DSL infrastructure. While this is certainly a step in the
right direction, it takes time and it is not the only change that needs
to take place to ensure the success of high-speed access services.
Currently, Service Providers invoice end users for phone services based on the number of phone lines running into the household. In the future, access services will allow multiple outgoing voice and data "calls" over one line. This technological enhancement will require Service Providers to repackage re·pack·age tr.v. re·pack·aged, re·pack·ag·ing, re·pack·ag·es To package again or anew, especially in a more attractive package. re·pack their current invoicing strategies in such a way that they will support end user adoption without limiting overall revenue. With the infrastructure and repackaging of products in place, Dell'Oro Group predicts that sales of CPE equipment will increase significantly in the latter years of our forecast. The Routers, Access & Voice 5-Year Forecast offers a complete overview of the industry with tables covering revenue, port and price forecasts for various technologies. Dell'Oro Group is a market research firm that specializes in providing accurate and timely data on the networking industry. |
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