DSL IC Market Will Grow Over 300% in 2000.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nov. 28, 2000

The DSL IC market will grow from just over 10 million ports shipped in 1999, to over 90 million by 2004 according to Cahners In-Stat Group, a high-tech market research firm.

"The DSL IC market is expanding rapidly in 2000, as providers begin a massive build-out of much-needed DSL infrastructure," states Katherine Bowen, a Research Analyst with In-Stat's Voice and Data Group. "Chipset integration and increasing densities are reducing costs, allowing ASPs to fall and reach mass market levels. The main barrier now lies in provisioning, to reduce the cost and time of deploying DSL."

DSL chipset and equipment manufacturers have intensively addressed major obstacles to deployment, including interoperability and standardization. As standards compliance and interoperability become typical, vendors are finding themselves competing primarily on cost. "To balance out this trend, vendors must start competing on levels beyond the mere offering of high-speed DSL access," says Bowen. "This means integrating more value into a DSL chipset and supporting the drive towards true plug-and-play CPE modems."

In-Stat has also found that:

-- Asymmetrical DSL (ADSL) leads the market, with the top three DSL IC vendors
all manufacturers of ADSL chipsets.

-- High growth in ADSL is set to continue over the forecast period, as
integrated line cards with POTS and ADSL enable penetration of the previously
unreachable residential market behind DLCs. This is key to growth in the US,
since the percent of the population residing behind DLCs is constantly
increasing.

-- The market for DSL IC ports is expected to grow at a CAGR of 84.3% through
2004.

The report, Silicon Superstar: The DSL IC Market Takes Off (No. NT0007MS), provides a market analysis and five-year forecast from 2000-2004 for symmetrical and asymmetrical DSL chipsets, including SHDSL as well as Lite ADSL. Vendor profiles for companies such as Alcatel, Microelectronics, Analog Devices, Inc. (ADI), Broadcom, Infineon, Intel, Lucent Microelectronics, NEC, ST Microelectronics and Texas Instruments are also included. To purchase this report, or for additional information, please visit contact Courtney McEuen at 480/609-4533; [e-mail]. The report price is $3,495 USD.

Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.