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News Briefs (April 01, 2003)

Arecent study released by Convergence Consulting Group Ltd. reveals that the Canadian data/Internet access market grew by 12 per cent last year, reaching $6.3 billion in revenue. That compares to a gr...


April 1, 2003  


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Arecent study released by Convergence Consulting Group Ltd. reveals that the Canadian data/Internet access market grew by 12 per cent last year, reaching $6.3 billion in revenue. That compares to a growth rate of 17 per cent in 2001.

The Toronto research and consulting firm projects that the market will grow to $7 billion by the end of 2003, and $7.6 billion by the end of 2004; representing growth rates of 11 per cent and nine per cent respectively.

Overall, data/Internet access revenue growth rates continue to decline. Data/Internet access sales to business, government, organizations comprise over half the market, but access sales to the residential market have a stronger growth rate.

“Residential Internet access is the key revenue driver of the overall market,” said company president Brahm Eiley. “Without residential Internet access revenue, the business and carrier/wholesale access market grew at just six per cent in 2002.”

Carrier sales (sales to ISPs, telcos, i.e., wholesale) are the smallest revenue segment with the lowest rate of growth. The company is forecasting that 2003-2004 residential data/Internet access revenue growth rates will be more than double non-residential Data/Internet access revenue growth rates, despite the slowdown in residential Internet access subscriber and revenue growth.

Other findings in the report show that:

Dedicated Internet access continues to experience moderate growth rates;

Digital Private Line is the largest revenue segment, but will be eclipsed by residential high-speed Internet access revenue by 2004. Private Line continues to be the workhorse of carrier (sales to ISPs, telcos, i.e., wholesale) connectivity;

Despite Frame Relay’s range of speeds and ability to interconnect (Frame-over-DSL, Frame-ATM, IP-enabled Frame), its growth continues to slow due to competition from LAN/Ethernet and IPVPN;

ATM continues to grow slowly, and is being challenged by the rise of LAN/Ethernet and IPVPN;

LAN/Ethernet is a strong competitor to Private Line, ATM and Frame due to its speed, scalability and relatively low cost. Unlike many other segments, new customers account for a significant share of LAN/Ethernet’s revenue growth;

IPVPN is an emerging segment with high growth rates. Remote access and site-to-site IPVPNs will continue to drive this segment forward, challenging both ATM and Frame Relay;

Legacy will continue to decline going forward;

Business DSL continues to be a key driver of corporate data/Internet access revenue growth due to its strong account growth. Robust growth rates will continue, however as compared to Business DSL, the firm does not expect business cable to command a significant share of the market within the timeframe covered in this report;

Satellite Data/Internet Access growth is forecasted to come from new platforms and offerings, as well as government broadband initiatives;

Business Dial continues to experience a slow decline due to Business DSL and business cable offerings, as well as by consumers using residential home access instead of business access products;

Despite its slowing rate of subscriber and revenue growth, residential high-speed Internet access will become the largest revenue segment by 2004, and

Dial Internet access will continue to lose subscribers going forward, but total Residential Dial-Speed Internet accounts are experiencing only a slight decline due to strong cable and DSL Lite Internet subscriber growth rates.

The bottom line, says Eiley, is that although there is still revenue growth, the market has become exceedingly mature. The good news is there are some bright spots including the growth of Business DSL, IPVPN and LAN/Ethernet.

By Paul Barker

The bottom line is that although there is still revenue growth, the market has become exceedingly mature.

Correction: The article entitled Cabling on the Home Front in the March issue of Cabling Systems compared the real-world throughput of HomePlug power-line networking to the rated throughput of 802.11b wireless networks. This was misleading. The rated speeds are 14 megabits per second for HomePlug and 11 megabits for 802.11b, and in real-world use HomePlug is slightly faster than 802.11b. We regret the error.

WORLD’S FIRST TELEROBOTICS-ASSISTED SURGERY PERFORMED IN CANADA

St. Joseph’s Healthcare Hamilton and North Bay General Hospital recently performed the world’s first successful hospital to hospital telerobotics-assisted surgery.

Dr. Mehran Anvari, founding director of the Centre for Minimal Access Surgery (CMAS) at St. Joseph’s, successfully collaborated with Dr. Craig McKinley, a general surgeon at North Bay General Hospital, to complete a laparoscopic Nissen fundoplication (anti-reflux) surgery on the North Bay patient. The two locations are nearly 400 kilometres away from each other.

“Until today, CMAS has been using telehealth to mentor surgeons located in community health settings, but now we have taken this one step further,” said Dr. Anvari. “We now can successfully use a robot from a distance, to actually assist and perform part of the surgery if necessary. The implications of this are far reaching.”

The event is the first in a series of collaborations between the two. The series is scheduled to demonstrate the safety and feasibility of telerobotics assisted surgery to extend the reach of expert health care to Canada’s remote populations.

AT&T CANADA COMPLETES INSTALLATION OF 7-ELEVEN NETWORK

AT&T Canada Inc. has completed installation of a high-speed data communication network for the 7-Eleven Inc. chain, fulfilling a contract valued at $7 million.

The three-year data and equipment service includes a Frame Relay network connecting 7-Eleven’s 500 Canadian stores and their Dallas, Tex. headquarters.

In addition to providing 7-Eleven with reliable data flow, the major convenience store operator will also be able to launch new applications in their retail outlets including an advanced retail information system.

“It will allow us to effectively manage our business, including the rapid and reliable transfer of essential sales, inventory and operational data,” said Robert Gray, director of technology management for 7-Eleven.

The company operates or franchises more than 5,800 7-Eleven stores in the U.S. and Canada.

SFU INSTALLS NEW NETWORK INTELLIGENCE SYSTEM

JaalaM Technologies has announced that its network intelligence system, appareNet, is being used by Simon Fraser University (SFU) to manage the intricate day-to-day network operations for the university’s three campuses that collectively serve almost 23,000 faculty, students and staff.

The system will help SFU determine whether problems are application or network-related, which problems are a priority and when upgrades should be performed. With appareNet, SFU Administration is better able to allocate limited funds to maximize network performance, the company says.

“Academia is a highly networked and dynamic environment with students, teachers, and researchers depending heavily on connectivity and functionality,” said Worth Johnson, Director of Operations and Technical Support at SFU. The SFU campus network comprises 8,000 workstations and servers spread across 4,000 active ports on switches and hubs at 70 distribution points on three campuses. It is linked to other educational institutions across the country through the shared fiber optic network, BCNET, and CA(*)net.


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