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ISDN Technology Making a Come Back


1995 was a year of turnaround for the Integrated Services Digital Network (ISDN). ISDN technology has been in place for over a decade and until very recently the market has remained stagnant until receiving a charge in 1995 due to increasing demand and availability. According to the latest strategic research in the telecommunications industry from Frost & Sullivan, ISDN Customer Premise Equipment (CPE) Markets, the market has experienced an enormous growth spurt.

ISDN's lack of applications, high prices and low availability of service hindered its penetration since it was first introduced to the marketplace. "The ISDN market was limited to small growth in the ISDN telephone equipment marketplace with hardly any activity in the ISDN computer and networking equipment and ISDN software markets. At the beginning of the 1990's the future of the ISDN still looked quite grim," according to telecommunications analyst Alena Brezinova.

After more than a decade of stagnation and negligible growth the market has finally taken off and technology is being heavily deployed in the corporate world. In 1995, the total revenues in the ISDN Customer Premise Equipment and software markets reached $2.30 billion. It is expected that by the end of the forecast period in 2002 the market will grow to $6.24 billion, which represents a compound annual growth rate of 15.3 percent for the market from 1992-2002.

One of the major market trends in the market is establishing major remote access technology whose speed enables transmission of large files as well as graphics and video. The number of ISDN users is growing as the user group diversifies from large corporations to smaller businesses and individual homes. More trends include major market players acquiring companies active in the ISDN market the second half of 1995 showed a record number of acquisitions in the market.

The market growth is attributed mainly to data transmission system as opposed to voice transmission, which has resulted in the computer networking market surpassing the telephone market as the most active segment.

The ISDN telephone equipment market has also grown as ISDN capabilities have gradually been added on to PBX systems. The increase in market revenues since the beginning of 1995 clearly demonstrates that after a long wait, the ISDN computer networking and software markets have finally entered into the growth stage with revenues and sales volumes going up rapidly.

With applications such as Internet and telecommuting increasing end user demand, the future of ISDN technology seems bright in the short term. As a demand for higher bandwidth continues, other faster technologies such as cable modems might eventually steal the spotlight. ISDN is a technology whose time has come.

The companies involved in this research include: 3Com Corporation, 4-Sight L.C., Acotec, ADAK Communications Corporation, ADAX Inc., Adtran, Advanced Computer Communications (ACC), Alcatel Telecom, Alpha Telecom Inc. U.S.A., Angia Communications Inc., Apple Computer Inc., Ascend Communications Inc., Ascom Timeplex Inc., Astrocom Corporation, Attachmate Corporation, AVM of America Inc., Bay Networks Inc., Best Data Products Inc., Black Box Corporation, Boca Research Inc., Cardinal Technologies Inc., Cascade Communications Corporation, Cisco Systems Inc., Chase Research Inc., Connectware Inc., Controlware Inc., Cortelco International Inc., CoSystems Inc., Cray Communications Inc., Data Technology Corporation, Develcom Electronics Ltd., DGM&S Inc., Diamond Multimedia Systems Inc., Dianatel Corporation, Digi International Inc., Digital Equipment Corporation, Dynamic Solutions International (DSI) Dynatech Communications Inc., E-Tech Research Inc., Eicon Technology Corporation, Elmic Systems Inc., ELSA Inc., Ericsson Inc., Farallon Communications Inc., FastComm Communications, Franklin Telecommunications Corporation, FTP Software Inc., Fujitsu Business Communications Systems Inc., Fujitsu Network Switching of America Inc., FutureTel Inc., Grandalf Systems Corporation, GPT Ltd., Hadax Electronics Inc., Hagenuk Telecom Gmbh, Harris DTS, Hayes Microcomputer Products Inc., Hewlett-Packard, Hitachi Telecom, IBM Corporation, Intecom, Integrated Network Corporation, Intel Corporation, International Transware Inc., Inter-Tel Inc., Information Resource Engineering Inc. (IRE), ISCOM Inc., ISDN Tek, Iwatsu America Inc., LAN-Link Corporation, Link Technology Inc., Livingstone Enterprises Inc., Lodestar Technology, Lucent Technologies, MacroTel International, Madge Networks, Maxpro Systems, Metacomp Inc., Microcom Inc., Microsoft Corporation, Microtronix Datacom Ltd., Mitel Inc., Mitsubishi Electronics America Inc., Motorola ISG, MPR Teltech Ltd., Multi-Tech Systems Inc., NEC America Inc., Network Express Inc., Newbridge Networks Inc., Nortel, Novell Inc., OST Inc., Penril Datacomm Networks Inc., Promptus Communications Inc., Proteon Inc., Racal-Datacom Inc., RAD Data Communications Inc., Rockwell International Network Systems, SAGEM, Samsung Telecommunications America Inc., SCii Telecom, Shiva Corporation, Siemens Rolm, Siemens Stromberg-Carlson, Silicon Graphics Inc., Specialix Inc., Sprint North Supply, SRX, Sun Microsystems Inc., Symplex Communications Corporation, Synaptel, Tadiran Electronic Industries Inc., Telebit Corporation, Telenetworks, TelePower, TeleProcessing Products Inc., TeleSoft International Inc., Teloquent Communications Corporation, Telrad Telecommunications Inc., TIE communications, Tone Commander Systems Inc., Toshiba America Information Systems Inc., Trillium Digital Systems Inc., Trisignal Communications, TxPort Inc., TyLink Corporation, U.S. Robotics Corporation, Vivo Software Inc., Vodavi Communications Systems, West End Systems Corporation, XBR Communications Inc., Xircom Inc., Xylogics Inc., Whittaker Xyplex, and ZyXEL Inc.

The technologies covered by the research include; ISDN computer networking equipment, ISDN telephone equipment and ISDN software. Additional technologies reviewed include: Additional Digital Subscriber Loop and cable modems which are now being tried by Regional Bell Operating Companies and cable companies.


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