DSL outlook rosy

A study released last week by Cahners In-Stat Group forecasts good times for DSL providers.

          A study released last week by Cahners In-Stat Group forecasts good times for DSL providers.

          Among the study's findings are: The number of new DSL subscribers will top 23 million worldwide by 2004; ADSL will be the flavour of choice, owning more than 70% of the market; North America will be the strongest growth market; and the Asia/Pacific region also will perform strongly.

          The report comes on the heels of a rocky month for some providers in the DSL market. Covad Communications had its share price hammered after the company reported it would have trouble collecting money owed by some of its ISP resellers. Earlier in the month, Comdisco announced it was pulling the plug on its Prism DSL unit, and Jato scrapped its earlier plans for a national DSL rollout.

          Mike Lowe, a Cahners analyst, says the main reason for the optimism is demand. Consumers and businesses are lining up for broadband services faster than service providers can deploy them.

          Lowe also notes DSL is reaching into regions it wasn't able to before, pointing to SBC Communications's Project Pronto and its use of smaller residential remote terminals and DSLAMs to extend the DSL service area.

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