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U.S. FRAME RELAY SALES WILL REACH ABOUT $370 MILLION IN THE YEAR 2000 TIMING OF RHCS' ENTRY SHOULD BE JUST RIGHT

U.S. FRAME RELAY SALES WILL REACH ABOUT $370 MILLION IN THE YEAR 2000
 TIMING OF RHCS' ENTRY SHOULD BE JUST RIGHT
 TULSA, Okla., Dec. 2 /PRNewswire/ -- The RHCs (Regional Holding Companies) face a market perception problem in that they are viewed as being late to the frame relay market. However, this market is just now developing, and entry by most of them in 1992 will still meet the opportunity window. U.S. public frame relay service sales will reach close to $370 million in the year 2000, according to Trans-Formation, Inc. projections.
 The entry of the RHCs in providing local access should be timely for the following reasons:
 -- A dramatic market take-off will not occur before 1993, when large carriers like AT&T and MCI are fully up and running and offering the service, and when end-users become more comfortable with the technology.
 -- There is not much of a learning curve with frame relay technology.
 -- Frame relay falls more in line with managing bandwidth than with addressing applications, which is a plus for the RHCs.
 Although the RHCs will face strong competition from alternativeness access carriers and other service providers, they have a number of strong advantages in offering local frame relay service including: ubiquitous local coverage, economies of scale within the LATAs, and current business relationships with the interexchange carriers.
 Trans-Formation, Inc. published "PUBLIC FRAME RELAY MARKET -- Carrier/VAN Strategies & Vendor Opportunities" on Nov. 8, 1991. The report included in-depth interviews with 38 experts at interexchange carriers, value-added networks, and telephone companies. Marketing managers, network engineers, and service planners were interviewed. The cost of the 250-page report is US$5,500.
 Trans-Formation, Inc., is an independent research firm specializing in transmission equipment markets.
 -0- 12/2/91
 /CONTACT: Mark Lutkowitz, Trans-Formation, Inc., 918-250-5250, or 918-492-8507 (evenings and weekends); fax - 918-250-3958/ CO: Trans-Formation, Inc. ST: Oklahoma IN: TLS SU: ECO


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Date:Dec 2, 1991
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