The number of digital subscriber lines (DSLs) installed in the US residential and business markets more than tripled between the end of 1998 and mid-1999.
At the end of 1998, 50 000 DSL lines were installed in the US residential and business markets. By mid-1999, that had soared to 160 000, according to International Data Corporation (IDC).
IDC is represented in SA by BMI-TechKnowledge Group.
Despite expected falling prices for the service, DSL revenues will soar past $2 billion in both the residential and small business markets by as soon as 2003.
"The development of the DSL market will be closely tied with consumer and small business Internet adoption," says Amy Harris, research analyst for IDC`s Residential and Small Business Telecommunications Services programmes.
"Work-at-home Internet users as well as power users are quickly becoming frustrated with slow dial-up speeds, and small businesses with multiple users accessing the Internet are looking to upgrade their access. However, growth of the DSL services market will also be impacted by competing technologies such as cable modems."
So far, incumbent local exchange carriers have focused most of their marketing on the residential market in response to competition from cable operators and to relieve congestion in their voice networks.
In the small business market, however, DSL service deployments are just getting under way with providers facing the dilemma that DSL will potentially cannibalise revenue from other high-speed services such as ISDN and leased lines.
According to IDC, distribution strategies will play a key role in the growth of DSL in the consumer market. DSL installations traditionally require a visit to the customer`s home or premise. Further complicating mass proliferation of DSL is the lack of consumer awareness about this technology as well as the need for consumer education about DSL installation.
Activity in the DSL market is being fuelled by the increase in the number of residential and small business customers as well as the growing number of players in the DSL market.
"To successfully reach these users, DSL service providers must have an effective marketing strategy in place," Harris says. "DSL adoption hinges on service providers finding the right mix of service availability, pricing, and ease of use."
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International Data Corporation (IDC)
BMI-T has established a long-standing business relationship with the International Data Corporation (IDC). With research centres in over 40 countries and more than 500 research analysts and 3 900 clients world-wide, IDC provides a global market perspective on IT market and technology trends.
As the exclusive South African partner of IDC, BMI-T has instant access to IDC`s formidable knowledge base and consulting skills, and is positioned to offer African clients access to the full range of IDC `s global research.
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BMI-TechKnowledge Group (BMI-T)
BMI-TechKnowledge (BMI-T) is Africa `s leading supplier of market intelligence and knowledge-based consulting in the areas of IT, telecommunications and broadcasting.
Formed over fourteen years ago, BMI-T provides its clients with an unmatched and comprehensive range of unbiased market knowledge. BMI-T conducts more than 20 000 market research business-to-business and business-to-consumer interviews and more than 100 focus group projects every year.
BMI-T has an active ongoing research publications business that has consistently published research-based market analysis covering many facets of the IT, telecommunications and emerging media sectors. This knowledge base provides the platform on which we build our customised research and consulting, including assignments such as market entry strategies, product entry strategies, channel and distribution analysis and African research.