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Weekly UpdatesThe DSL industry is experiencing hard times. Service providers and equipment manufacturers are struggling to remain financially viable. These struggles are not a reflection of the technology per say, but the growing pains of a young industry. Can the implementation of value-added services breath life into the struggling DSL industry? The latest report from Pioneer Consulting, "Enabling Value-Added Services Over DSL Networks: Market Opportunities for Service Providers and Equipment Suppliers," takes a comprehensive look at these value-added services and the sizeable market opportunities they represent for DSL service providers and equipment manufacturers.
"Current weakness in DSL markets reflects the growing pains of a nascent industry," said Paul Kellett, senior director of research at Pioneer Consulting. "Service providers and equipment manufacturers have not yet tapped the full potential of the market, which is poised for a revitalization from the introduction of DSL-enabled value-added services."
According to Pioneer's new study, over 16 million DSL customers will subscribe to over 25 million value-added services by 2005. Value-added services are defined as enhancements to a basic DSL access product that are enabled by that product. Some examples of these services include: Video-On-Demand (VOD), Voice-Over DSL (VoDSL), MPEG Music, Multi-Player Gaming, Videoconferenceing, Broadcast Television and Virtual Private Networking (VPN). Pioneer estimates that value-added services represent a market opportunity varying from $15.8 billion to $26.6 billion per year, depending on pricing selected by service providers.
"Each of the value-added services mentioned in the report will generate considerable interest among subscribers. However, VPN services will clearly lead the pack in terms of revenue and number of subscribers," said Michael Lowe, senior market analyst on emerging broadband research at Pioneer Consulting. "This is because VPN services have become so important to the operations of many businesses where other services will be seen as more of a luxury. It is important to note though, that many of these services will be delivered in the form of a bundle."
The report offered by Pioneer examines the market for value-added services in the United States between 2001-2005 and highlights the benefits for service providers and equipment suppliers, analyzes the demand and forecasts the U.S. market share.
The report also provides insight to several questions including the following: Which value-added services will be most profitable? What service providers and equipment suppliers must do to take advantage of the market potential? What pitfalls to avoid? At its conclusion, the report demonstrates that the optimal way to achieve profitability, sustained growth and increased end-user loyalty, is through the implementation of value-added services.
About "Enabling Value-Added Services Over DSL Networks: Market Opportunities for Service Providers and Suppliers" The "Enabling Value-Added Services Over DSL Networks: Market Opportunities for Service Providers and Suppliers" report can be purchased in both hard copy and electronic formats.
About Pioneer Consulting, LLC
Pioneer Consulting, LLC, headquartered in Boston, Massachusetts, is a leading international market research and analysis firm specializing in global, high-speed telecommunications network market research and technologies.
Through its reports Pioneer provides in-depth research and analysis in areas such as: Optical Networks, Fiber Optics, Broadband Wireless Systems, Satellite Systems and Emerging Broadband Access for several Global 500 companies including Alcatel, Cisco Systems, Fujitsu, Lucent Technologies, Morgan Stanley Dean Witter, Nortel Networks, Siemens and Sprint.
A table of contents and executive summary are available at http://www.pioneerconsulting.com or by calling (617)424-5200.
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