Navigating Change....
The PELORUS Group
  Market Research and Consulting Services

FOR IMMEDIATE RELEASE

BROADBAND TRANSPORT REVENUES
 TO DOUBLE BY 2003!

                             Date: September 14, 1999
                             Contact: Greggory S. Blundell
                             Phone: 908-707-1121
                             Fax: 908-707-1135
                             E-mail: info@pelorus-group.com
                                                                                   

Raritan, NJ - Both the business and residential theaters are generating an explosive demand for the products associated with implementing broadband transport. Despite the market’s already substantial proportions, its recent historic growth will barely slow at all over the next five years. The sheer quantity of information - compounded by new quality and speed requirements - flooding the network virtually assures a robust demand.

According to a new report just released by The PELORUS Group entitled "Broadband Transport Equipment", two powerful considerations are pushing forward the market. Telecommunications service providers must meet the new requirements of their business and residential customers; and, large enterprises and government agencies must be able to implement private networks that can satisfy their information transport requirements Today, both wireline and wireless equipment is used to implement broadband transport. This equipment includes: fiber optic cable, dense wavelength division multiplexing (DWDM), cross-connects, SONET multiplexers, microwave radio, and earthstations. Combined revenue for these categories exceeded $8.8 billion in 1998, and will climb over $21 billion by the end of 2003.

Specifically, SONET multiplexers represent the largest component with $4.1 billion worth of associated revenues generated in 1998. Fiber optic cable tallied $1.9 billion. Fiber optic cross-connects generated $375 million, while DWDM multiplexers accounted for $1.3 billion. Microwave radio has its own market niche, as attested to by its $420 million showing. Finally, broadband earthstations in 1998 hit $725 million.

Several developments will drive these markets to new heights. Chief among these developments is an ever-increasing amount of traffic. Multimedia bumps up the data rate for each session into the high Khz range. Thus, there is a double affect of more sessions with more data.

Meanwhile, the availability of high-speed access to small businesses and residences encourages these locations to handle and transmit large amounts of information. Broadband network switches are being installed in service providers’ networks and enterprises’ private networks. The availability of fiber optic and microcircuit technology has enabled new transmission products such as SONET, DWDM, and optical cross-connects. Finally, wireless technology used in digital microwave and satellite equipment has enabled the development of broadband wireless transport.