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DSLAM market booming, but highly competitive

The Digital Subscriber Line Access Multiplexer (DSLAM) market had a dramatic upswing in 2003 that created many oppo...


April 19, 2004  


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The Digital Subscriber Line Access Multiplexer (DSLAM) market had a dramatic upswing in 2003 that created many opportunities for equipment vendors, according to a new study from high-tech market research firm In-Stat/MDR.

The report concludes that shipments, driven by strong DSL subscriber growth and service providers rapidly adding capacity to plan for future expansion, experienced a significant upturn.

Compared to 2002, worldwide shipments of DSLAM ports more than doubled last year.

However, senior analyst Henry Goldbery expects DSLAM port shipments to grow more slowly next year, as a result of the additional capacity that was added in 2003 and a slower rate of DSL subscriber growth.

Despite the slowdown, port shipments should still grow by a healthy 40%, and will continue to grow over the next five years, but at a declining rate as new DSL subscriber additions each year decrease, due to increased market penetration.

In-Stat/MDR also found that:

* The Average Selling Price (ASP) per DSLAM port, worldwide, dropped by over 30% in 2003, as vendors competed fiercely on price to win contracts. This price erosion will also continue in coming years, keeping revenue growth rates below those of port shipments;

* Alcatel continued to be the dominant vendor of DSLAMs in all regions, except for the Asia-Pacific region (where they were the 2nd -leading vendor), and

* New higher-bandwidth forms of DSL will replace standard ADSL.

Further information is available at www.instat.com.