Researcher: Residential DSL market will hit bottom this year

Oct. 24, 2001
October 24, 2001 Access platform shows signs of stability, will reach 13.5 million homes by 2005.

According to Cahners Instat Group (www.instat.com), the market for residential Digital Subscriber Line (DSL) service will bottom out late this year, and will be positioned for growth over the next five years. The research firm says that the slowing of the market this year appears to be stabilizing.

�Even though the residential DSL market slowed significantly after the first quarter of 2000, residential DSL broadband access services are becoming increasingly available as providers are able to extend their services to the edge of the network,� says Ernie Bergstrom, a senior analyst with In-Stat. �Price drops will have to take place soon to foster customers as cable and DSL access begin to experience more pricing parity, leaving value-added offerings as the only differentiator between the big two residential broadband access services.

�DSL price wars have already started in Asia,� Bergstrom continues, �and are certain to reach our shores in the near future, forcing DSL and cable service providers to rethink their marketing strategy.�

Other findings contained in In-Stat�s report �U.S. Residential Market Continues to Grow� include:

� Incumbent local exchange carriers dominate in market position.

� The installed base in this country will reach 3.6 million by the end of this year and 13.5 million by the end of 2005.

� In 2005, DSL service revenue will exceed $7 billion.

The report costs $3495.

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