F&S Reports on DSL

PALO ALTO, Calif. -- Rapid advancements in applications have alerted xDSL test equipment vendors to the importance of equipment developments and upgrades.

For instance, as DSL access multiplexer (DSLAM) equipment have upgraded from asynchronous transfer mode (ATM) to Internet Protocol (IP)-based equipment, xDSL test equipment vendors are being compelled to develop test equipment to support these higher-capacity tools.

New analysis from Frost & Sullivan, World xDSL Test Equipment Markets, reveals that revenues in this market totaled $357.8 million in 2004 and is projected to reach $885.2 million in 2011.

xDSL companies have to offer sophisticated products to test increasingly popular applications such as voice- and video-over DSL. If they slacken the pace of product development, enterprises are likely to turn to developing test equipment in-house, which can adversely impact the sales of xDSL test equipment.

However, the huge demand for broadband and high-speed Internet connectivity is likely to ensure substantial deployment of xDSL technologies by incumbent local exchange carriers (ILECs).

The new trend of converging video, voice and data on the same system, also known as 'triple play', is proving to be another significant driver for the xDSL market. While telecom companies wish to add IP television (IPTV) to their services, cable television companies are hoping to offer voice services.

The move toward triple play has consequently facilitated the growth of high-speed networks and ADSL2+ and very-high-speed DSL (VDSL) are the broadband technologies used to meet triple play requirements.

"These technologies can support services that require higher bandwidth such as video, high-speed data interconnection, and online gaming and provide different levels of bandwidth for home and business users," say Frost & Sullivan Research Analysts Ayshwarya Deepak and Olga Yashkova. "As a result, there is also growth in the xDSL test equipment market."

Frost & Sullivan