ENTERPRISE EQUIPMENT MODEMS: Ready for a Makeover

MARKET INFORMATION

The number of Internet connections is expected to rise by at least 40 percent (year-on-year) for the next five years. This should provide the required surge to the modem market. There are many technologies available in the market including dial-up, DSL and ETTH. The leased-line modem segment is expected to do well as a market segment till 2005, but most predict that it will be overtaken by broadband which is expected to account for 50 percent of the market by 2005.

Main Vendors

l	Dax	l	D-Link
l	Microtek	l	Motorola
l	MRO-Tek

But the Indian broadband modem market, consisting of cable and xDSL modems, is yet to mature. Cable modems, which usually have an Ethernet output, can provide Internet access to multiple PCs. The only hitch is that computers should be connected by a local area network (LAN). The Ethernet output will enable a cable modem to connect to a LAN with a standard Ethernet hub or router. However, many feel that cable modems will be phased out in the next two years. Internal modems are expected to replace the external modems by 2004. Dial-up 56 kbps modems will transition to ETTH and broadband, which will be on board by 2005.

In countries where broadband enters late, xDSL would have the edge. In India, the fight would be between xDSL and ETTH, with both technologies getting decent market shares, though as of now, ETTH has an edge. But in many opinions, ETTH is a better technology, as it provides higher bandwidth and networking performance at up to 100 Mbps, and can be used for mass deployment.