INFOTECH/RESEARCH FIRST CONSULTING PREDICT THE SMALL BUSINESS VODSL MARKET WILL REACH $7B BY 2005
October 25, 2001 - Business Wire

PARSIPPANY, N.J.--(BUSINESS WIRE)--Oct. 25, 2001-- Small businesses are eager to acquire broadband access, and express strong interest in Voice over DSL in their search for reliable and affordable broadband access and services.

According to VoDSL: Opportunity Within the Small Business Marketplace, a new study from global consulting firm InfoTech and Research First Consulting, small business VoDSL revenue could reach $7B by 2005. The forecast is driven by the small business market's demand for VoDSL as a secure, and reasonably priced broadband access alternative, and it potential for providing multiple next-generation features such as interactions with PC applications and find me/follow me services.

Given a sample size of 900 small businesses among over 16 different industries, a surprisingly large number of small businesses are interested in obtaining VoDSL services. The study revealed that

  • 21.8% of small businesses showing interest in VoDSL services express willingness to switch from their existing telco to a competitive carrier, while 25.3% of all companies are interested in VoDSL services from their current LEC.

This study can advise current and upcoming VoDSL service providers of the bundled service offerings that most appeal to small businesses and help them to create sales targets based on knowledge of the five small business sectors most likely to seek VoDSL services, including the legal services and communications industries. The study outlines the present and future offerings of the major competitors in the VoDSL service provider market, including MPower (NASDAQ: MPWR), Covad (NASDAQ: COVD), Qwest (NYSE: Q), and BellSouth (NYSE: BLS).

Information on the impact of integrated access device pricing, which could be a potential barrier to small business VoDSL adoption due to the IAD's traditionally high price, will help CPE manufacturers to more effectively meet the pricing needs of small businesses. In addition, the study can provide manufacturers of phone systems with an understanding the impact of VoDSL-based phone systems on revenue from existing technologies such as PBX, Centrex, and key systems. The study also assists CPE providers in learning about their competitors' offerings, including information on the offerings of Jetstream, Alcatel (NYSE: ALA), and Westell Technologies (NASDAQ: WSTL).

Research First Consulting (RFC) is a market research and consulting firm covering the telecommunications industry. RFC is focused on new service and technology developments and offers a suite of services including market research, marketing consulting, association management, and seminars. Founded in 1987 and headquartered in Birmingham, AL, RFC serves telecom and networking clients in the US, Asia, Europe and Latin America.

InfoTech is a subsidiary of PBI Media, specializing in global information and professional services for the telecommunications and data networking industries. InfoTech offers a comprehensive scope of information and professional services, including custom project consulting, market and competitive intelligence programs, tactical sales support tools, primary research studies, and custom marketing programs. Further information about InfoTech can be obtained at the company's web site at www.accessintel-infotech.com.

To purchase or learn more about this or other InfoTech studies, please contact Mark Ricca at 973-602-0124 (mricca@accessintel.com).

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