DSL POSITIONED TO OVERTAKE CABLE.(Company Business and Marketing)

Efficient Networks continued their surge in the DSL customer premise equipment market, once again boasting market share lead in ADSL modems for Q2 2000, according to Cahners In-Stat Group, Scottsdale, Ariz.

The high-tech market research firm reports that Efficient led the ADSL CPE market, claiming 33.1 percent of the market, with over 450,000 units sold. Alcatel, once again, took second place, with 23.6 percent market share, or just under 325,000 units sold.

"Both companies benefited from aggressive DSL deployments by SBC," said Mike Lowe, senior analyst for In-Stat's Advanced Carriers Service. "With SBC's Project Pronto really starting to gain momentum, both Efficient and Alcatel will continue to enjoy strong growth."

Lowe noted that diversification is also a key for these market leaders.

"Both Efficient and Alcatel have a strong international presence, which leaves them well-positioned as DSL in these markets begins to expand."

In-Stat has also found the following:

-- Cable modems helped contribute to a strong quarter overall in the digital modem arena. Total sales of ADSL modems and cable modems combined exceeded 2.8 million units in Q2 2000.

-- As previously forecasted, signs are beginning to emerge that DSL is ready to overtake cable modems. While DSL modem sales continued to grow at a 50 percent pace, quarter over quarter, cable modem growth actually slowed from 31 percent growth in Q1 2000 to 24 percent in Q2 2000.

-- Motorola once again led the cable modem market with a 32.3 percent market share, or 490,000 units sold. Terayon was second in this market, with 17.9 percent market share, or more than 270,000 units sold.

In-Stat's report, Q2 2000 Analog and Digital Modem Market Shares (No. CQ0003M7) breaks out DSL and cable modem unit sales and market shares, and provides forecasts through Q1 2001.

To purchase this report or for more information, please visit http://www.instat.com/catalog/cat-cq-modem.htm#cq0003m7 or call Courtney McEuen at 480/609-4533; cmceuen@instat.com. The report price is $2,995 USD.

Cahners In-Stat Group (http://www.instat.com/) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

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