Residential DSL Market Has Bottomed Out.

According to Cahners In-Stat Group, the market for Digital Subscriber Line (DSL) residential service will bottom out in late 2001 and will be positioned for considerable growth in the next five years. The high-tech market research firm reports that slowing in 2001, characterized by the dramatic collapse of key Competitive Local Exchange Carriers (CLECs), 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 in the home 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 and are certain to reach our shores in the near future, forcing DSL and cable service providers to rethink their marketing strategy.”

In-Stat has also found that:

The Incumbent Local Exchange Carrier (ILEC) companies are holding the dominant position in the market.

The U.S. DSL residential installed base of broadband subscribers will reach 3.6 million by the end of 2001, and exceed 13.5 million by the end of 2005.

DSL services in the U.S. will produce in excess of 7 billion dollars of revenue by 2005.

In the United States, cable modem access will remain the broadband access technology with the most subscribers until late 2004.

For more information at http://www.cahners.com