Business Gateway Market Will Take Off in 2007 According to In-Stat.

SCOTTSDALE, Ariz. -- The market for multiservice Business Gateway equipment will ramp up beginning in 2007, reports In-Stat (http://www.in-stat.com). By 2007, service providers will offer bundled service offerings that include Business Gateway devices for SMB and branch office markets, a development prized by customers. A Business Gateway is a next-generation networking device designed specifically to perform multiple primary functions in contrast to the plethora of multiservice devices that remain optimized for a single function or application.

"Field trials of new Business Gateway products will continue through the remainder of 2005 and most of 2006," said Keith Nissen, In-Stat analyst. "Our survey data shows that Business Gateway buying decisions will be driven more by datacomm device replacement than by PBX replacement."

A recent report by In-Stat found the following:

--North America will be the largest geographic market, with approximately 43% of total Business Gateway shipments in 2007, followed by Europe with a 33% share of the market.

--Respondents to an In-Stat survey clearly indicated a preference toward multiservice devices and a bundle of services supplied by a single service provider.

--The migration to VoIP may also prompt the equipment buying decision, but currently, small and medium businesses and small enterprises do not have plans for full VoIP deployment.

The report, "SMBs & Branch Office Markets Prefer Multi-Service Business Gateways!" (#IN0501821LN), covers the market for Business Gateways in the small and medium-sized business and branch office market. It includes the results of a July 2005 In-Stat market survey conducted to identify market characteristics and equipment buying preferences for voice and data equipment/services. The report features analysis of the implications of the survey on vendors, and unit and revenue Business Gateway forecasts.

For more information on this report, please visit: http://www.instat.com/catalog/Ncatalogue.asp?id=138 or contact Tina Sheltra at 480-609-4531 or [e-mail]. The report price is $3,495.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, assessments and market forecasts of semiconductors and advanced communications equipment and services. Our forecasts, analysis, and insights are derived from both a deep technology understanding and a unique research methodology, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical technology, product and success decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. In-Stat analysts gain exceptional insight into geographic marketplaces and specific technologies within markets such as electronics, cable and wireless. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.