March 11, 2002 -- According to a new study from Allied Business Intelligence, the telecom industry downturn undoubtedly delayed deployments of Voice over DSL (VoDSL) solutions in the 2000-2001 timeframe. However, by the fourth quarter of 2001, the rebirth of VoDSL was beginning to take root. Also, CLECs worldwide are experiencing strong subscriber growth for VoDSL service, and Allied Business Intelligence (ABI) expects this trend to continue. ABI expects CLECs in North America, Europe, and South Korea will lead in VoDSL deployments in 2002.

In the initial stages of VoDSL, incumbent carriers expressed concerns about potential technical difficulties in deploying VoDSL. Furthermore, the potential for cannibalization of existing telephony revenues kept ILECs on the sidelines. However, as the technology has matured, interoperability issues resolved, and test trials found to be successful, apprehension over VoDSL deployment is becoming more muted.

"The revival of VoDSL is taking place. A weathered and experienced core group of CLECs has endured and these players are learning to scale their deployment of VoDSL services in a much more realistic regional manner; in comparison to the wide-deployment model of their failed predecessors," said John W. Chang, ABI Senior Analyst and report author. "In the longer-term the ILECs remain critical for a broader rollout of VoDSL services."

Research findings include:

- Revenue generated by both service providers and equipment vendors of VoDSL for year-end 2002 will be $159.7 million dollars, representing over a 90% increase from 2001.

- By year-end 2002, there will be 96,550 VoDSL subscriber lines versus 14,000 in 2001.

- By 2003, South Korea will be the leader of VoDSL deployment in Asia.

- All incumbent carriers have tested VoDSL technology, and some incumbent carriers will have field deployments in 2002.

The ABI report examines the ILEC and CLEC deployments of VoDSL worldwide and provides an outlook on where the industry is headed. Also provided are the regional forecasts for VoDSL subscribers, voice gateway and integrated access device (IAD) shipments, and market share analyses. The report includes profiles of key service and equipment vendors.

Allied Business Intelligence Inc is an Oyster Bay, NY-based technology research think tank specializing in communications and emerging technology markets.

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