DSL and Cable Modems to Speed Past 32 Million Units by 2004

 FOR IMMEDIATE RELEASE  CONTACT: Keith Parker
 July 1, 2000  Data Analysis Group
   Phone: (707) 894-9100
   E-mail: support@infott.com
  URL: www.infotechtrends.com

New Creek Ranch, California - July 1, 2000. InfoTech Trends sees rapid growth in installed bases of DSL and cable modems by 2004. Total installed base for both types of modems will exceed 32 million units. Both technologies will need to overcome problems. Major challenges faced by DSL include voice integration, installation cost, and distance barriers. Cable modems face fewer technological problems but must overcome the reputation of being unreliable. Head to head competition between the two and with other technologies will benefit consumers.

The need for speed fuels strong growth over the next four years. Between the two, DSL shipments will increase at a faster pace than cable modems. By 2004 there will be over 18 million DSL installed, compared to 14 million cable modems. Cable modem sales primarily rely on the installed base of cable for viewing TV. The potential market for DSL on the other hand includes subscribers to cable service as well as other non-subscribers. Consequently, DSL has a broader base of potential users. Price, ease of installation, and reliability will be important purchasing considerations.

Forecast installed base of DSL and cable modems, U.S.
   

Units(mil)

 
 Year

 DSL

 Cable Modems

 Total

 2000

2.3

 3.1

 5.4

 2004

 18.1

 14.4

 32.4

 AGR

67.5% 

 46.8%

 56.5%

Source: www.infotechtrends.com

The information in this press release is based on a review of InfoTech Trends database of market research statistics. For more market data on the information technology industry go to Free Data. To see our press releases go to Press Releases.

InfoTech Trends is a fee-based information provider of market data on computers, peripherals, software, storage, the Internet, and communications equipment. Information includes forecast sales, forecast shipments, market share, installed base, industry trends, and more.

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