Long Term Outlook Good for Techs, Says Allied Business Intelligence

Apr 10, 2001, 01:00 ET from Allied Business Intelligence Inc

    OYSTER BAY, N.Y., April 10 /PRNewswire/ -- While the first quarter of 2001
 brought mostly bad news for the technology sector, the long-term prognosis for
 the telecommunications industry is nothing but good, according to Allied
 Business Intelligence (ABI). Wireline and wireless systems will continue to
 flourish in the long term, with broadband applications on both sides of the
 telecom fence driving many associated technologies.
     While wireless handset sales, and subsequently chips, for second
 generation and third generation handsets, did not meet the overstated
 projections of 2000, in the long run the wireless handset business is a
 healthy and a vibrant one. By year end 2006 there will be over 800 million
 handsets sold. While there have been some grumblings over the slow uptake of
 3G and infrastructure to allow the new generation of wireless applications,
 this market will also be strong during the next five years.
     Sales of IP telephony equipment to carriers have been put off, but it is
 not disappearing. Converging voice and IP-based networks makes too much sense.
 Whatever happens this year, the equipment market in five years will be the
 same -- $9 billion.
     Sales of VoDSL gear may have been put off, but the market will exist. The
 difference is that sales will likely be to incumbents rather than to CLECs.
 Sales of carrier gateways will still exceed $300 million in five years. Sales
 of IADs will still be $1 billion in five years.
     Despite the woes of the LMDS community, manufacturers offering equipment
 for services at lower frequencies, particularly at the 2.5 GHz, 3.5 GHz and
 the unlicensed 2.4 GHz bands, have been quietly building a success story.
 These companies include VYYO and Breezecom, amongst others. Meanwhile, there
 are early signs of a recovery in the LMDS sector as companies such as Ensemble
 Communications begin to ship their next generation point-to-multipoint
 equipment.
     WLANs are actually gaining momentum this year. With greater demand for
 wireless connectivity, 802.11b equipment shipments rose fourfold in 2000 and
 are projected to at least double this year. Notebook vendors such as Toshiba,
 have already begun embedding 802.11b solutions into their product line.
     Digital set-top boxes have enjoyed tremendous growth as both satellite and
 cable providers move aggressively on a global basis to digitized
 transmissions. Set-top box sales are expected to grow from 26 million units in
 2000 to at least 36 million this year, before reaching 94 million units by
 2005.
     No matter which telecommunications technology is looked at, while the
 beginning of this year may have been rough, it will get much better.
     Allied Business Intelligence Inc is an Oyster Bay, NY-based technology
 research think publishing strategic research on the broadband, wireless,
 electronics, networking and energy industries. Details can be found at
 alliedworld.com or by calling 516-624-3113.
 
 

SOURCE Allied Business Intelligence Inc
    OYSTER BAY, N.Y., April 10 /PRNewswire/ -- While the first quarter of 2001
 brought mostly bad news for the technology sector, the long-term prognosis for
 the telecommunications industry is nothing but good, according to Allied
 Business Intelligence (ABI). Wireline and wireless systems will continue to
 flourish in the long term, with broadband applications on both sides of the
 telecom fence driving many associated technologies.
     While wireless handset sales, and subsequently chips, for second
 generation and third generation handsets, did not meet the overstated
 projections of 2000, in the long run the wireless handset business is a
 healthy and a vibrant one. By year end 2006 there will be over 800 million
 handsets sold. While there have been some grumblings over the slow uptake of
 3G and infrastructure to allow the new generation of wireless applications,
 this market will also be strong during the next five years.
     Sales of IP telephony equipment to carriers have been put off, but it is
 not disappearing. Converging voice and IP-based networks makes too much sense.
 Whatever happens this year, the equipment market in five years will be the
 same -- $9 billion.
     Sales of VoDSL gear may have been put off, but the market will exist. The
 difference is that sales will likely be to incumbents rather than to CLECs.
 Sales of carrier gateways will still exceed $300 million in five years. Sales
 of IADs will still be $1 billion in five years.
     Despite the woes of the LMDS community, manufacturers offering equipment
 for services at lower frequencies, particularly at the 2.5 GHz, 3.5 GHz and
 the unlicensed 2.4 GHz bands, have been quietly building a success story.
 These companies include VYYO and Breezecom, amongst others. Meanwhile, there
 are early signs of a recovery in the LMDS sector as companies such as Ensemble
 Communications begin to ship their next generation point-to-multipoint
 equipment.
     WLANs are actually gaining momentum this year. With greater demand for
 wireless connectivity, 802.11b equipment shipments rose fourfold in 2000 and
 are projected to at least double this year. Notebook vendors such as Toshiba,
 have already begun embedding 802.11b solutions into their product line.
     Digital set-top boxes have enjoyed tremendous growth as both satellite and
 cable providers move aggressively on a global basis to digitized
 transmissions. Set-top box sales are expected to grow from 26 million units in
 2000 to at least 36 million this year, before reaching 94 million units by
 2005.
     No matter which telecommunications technology is looked at, while the
 beginning of this year may have been rough, it will get much better.
     Allied Business Intelligence Inc is an Oyster Bay, NY-based technology
 research think publishing strategic research on the broadband, wireless,
 electronics, networking and energy industries. Details can be found at
 alliedworld.com or by calling 516-624-3113.
 
 SOURCE  Allied Business Intelligence Inc