V.92 Appeals to Dial-Up Users

Research firm contends that ISPs planning to serve residential users need to climb on the V.92 bandwagon or risk diminishing returns on residential markets over the next four years.

by ISP-Planet Staff [March 29, 2002]

According to a new report from In-Stat/MDR, ISPs need to change their current course and accelerate adoption of V.92 modem standards or risk missing out on the next big thing in consumer demand through 2006.

Often touted as a less expensive alternative to pricier forms of broadband access like DSL or cable, V.92 promises home users faster Internet connections and quicker file transfers on the upload. But analysts like In-Stat/MDR's Daryl Schoolar say that the most alluring feature of V.92 is that dial-up users can take a phone call while on the Internet.

"The growing interest in V.92, on the demand side of the service equation, will force service providers to reexamine their attitudes towards the new modem standard," Schoolar said. "At the national level, only Level 3 has come out in support of the new modem standard. Regional ISPs have taken the lead in rolling out V.92 services as upgrading their network to support the new V.92 modem standard is often significantly easier than it is for a national service provider."

Key findings from the In-Stat/MDR study include:

• Widespread V.92 market acceptance is reliant upon both sides of the consumer ISP market, the demand side and the supply side. The new modem standard will not take off until there are significant changes on both sides of the market.
• In 2001, close to 11 percent of all U.S. consumer analog modems shipped were V.92. This will grow to close to 44 percent in 2003 and nearly 100 percent by 2004.
• The entire worldwide modem market is in the process of converting to V.92, especially in Europe. This includes modems going into both the consumer and business markets. At the end of 2001 approximately 6.8 million units of V.92 were shipped.

The report, V.92—Broadening Narrowband, is based primarily on supply side research of the primary players in this market, including modem manufacturers, computer vendors, network equipment vendors, Internet backbone providers, and ISPs.

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