Broadband Internet Access To Surpass Dial in 2003; Business DSL Services Spur Migration to Dedicated Internet Connectivity According to New Research by Vertical Systems Group.

Business/Technology Editors

DEDHAM, Mass.--(BUSINESS WIRE)--June 1, 2000

Installations of broadband access connections from U.S. business establishments to the public Internet will first surpass use of dial access in 2003 according to recently released results in the Broadband Industry Update, a web-based study by Vertical Systems Group. The study reports that the accessibility of DSL (Digital Subscriber Line) is spurring business customer migration from dial access to higher speed dedicated Internet connectivity. By 2003, use of DSL will exceed installations of all other broadband business Internet access technologies combined, including leased lines, frame relay, ATM, cable modem, wireless, satellite and optical.

The total number of U.S. Internet-connected businesses is projected to increase significantly in the next three years, jumping from 2.96 million establishments in 2000 to 4.48 million in 2003. During this time period, broadband connections will increase by 264% while use of dial access will decline 10%.

"Emerging technologies like DSL enable businesses to more cost effectively connect to the public Internet at broadband access speeds," said Rosemary Cochran, Principal of Vertical Systems Group. "This is particularly a boon for small and medium-sized business establishments that have been previously unable to afford dedicated connections."

The newly released Internet Access track of the Broadband Industry Update covers both the business and residential market segments in the U.S. through 2003. Detailed projections include Internet penetration for each segment, the number of connections by technology and connectivity trends.

The Broadband Industry Update is available exclusively in conjunction with Vertical Systems Group's Emerging Networks Subscription (ENS) Service. Based on extensive end-user demand and supply-side research, this comprehensive web-based study segments and quantifies the markets for network services and equipment. In addition to U.S. Internet access, the study covers the worldwide markets for DSL, cable modem, ATM, frame relay, leased lines and other services, as well as ATM and frame relay equipment. Vertical Systems Group (http://www.verticalsystems.com) is recognized worldwide as a leading market research and strategic consulting firm specializing in defensible quantification of the networking industry. The firm's market projections focus on network migration, incorporating how legacy market segments are impacted by shifts to emerging and competing technologies.