ADSL Modem Shipments: 1 Million in 1999

By the end of 1999, ADSL modem shipments are expected to pass 1 million, according to a report by Cahners In-Stat Group.

Cahners credits the growth to the broadening of service roll outs in the US and internationally. Worldwide ADSL shipments grew 50 percent sequentially in the second quarter of 1999.

Alcatel led the market in ADSL modems shipped, with a 33 percent worldwide share. Cisco ranked second with an 18.7 percent share followed by Orckit, with a 13.7 percent share.

“While only a few vendors hold the majority share in the ADSL modem market today, the move towards a retail and PC OEM market over the next 12 months will change the vendor line up considerably,” said Shannon Pleasant, senior analyst for Cahners In-Stat’s Voice and Data Communications Group. “We are already seeing several new entrants in the cable modem market that are traditional retail players.”

Cable modem growth continued to slow to 21 percent sequentially. Based on results from the first half of 1999, worldwide cable modem shipments in 1999 will surpass 2.6 million, still a considerable lead over ADSL. While overall growth slowed, Cablelabs/DOCSIS based cable modems increased to 19 percent of cable modems shipped in the second quarter of 1999, up from 13 percent in the first quarter of 1999. Cahners expects this trend to continue as standards-based cable modems become available from market leaders Motorola and Nortel Networks in the second half of 1999.

Motorola and Nortel Networks combined held 49 percent of total cable modems shipped in the second quarter of 1999. Com 21 ranked third overall with 11 percent unit share. 3Com, General Instruments, and Samsung lead in DOCSIS-based modem shipments.