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Triple Play Holds Significant Potential for Vendors in the European Communication Test Equipment Market13 December 2005
With considerable advancements in technologies such as asynchronous transfer mode (ATM), synchronous optical network (SONET), gigabit Ethernet (GbE) and 10 gigabit Ethernet (10GbE), the European telecommunication industry is seeing accelerated growth. 'Internet Protocol (IP) Everywhere' is the new buzzword in the telecommunications industry and in the progress towards convergence, service providers are competing aggressively to offer triple play (telephony, data and video services) to their customers.
At the recently concluded Broadband World Forum (Europe) in Madrid, Telecom Austria announced the launch of triple play services by the end of this year. In continuance with this trend, more countries are promising to deploy triple play services in the near future and with the convergence phenomenon creating more complex communications systems and networks, the increased need for test equipment is ensuring better opportunities for vendors in the European communication test equipment market.
Also aiding market growth is the rapid adoption of Internet Protocol (IP) technology. Applications such as voice over Internet protocol (VoIP) and IP multimedia subsystems (IMSs) have served to bring about a massive increase in network traffic and consequently, the total broadband lines in Europe grew by more than 65.0 per cent in 2004, with the United Kingdom, France, Switzerland and Italy registering the highest growth. As service providers continue to roll out a rich variety of content such as Internet Protocol television (IPTV) and IMS, which require reliable and high-speed connections, the demand for more bandwidth is further fuelling growth in the European communication test equipment market.
However, the dearth of market awareness among end-users is proving a challenge for vendors of communication test equipment. Often, the availability of low-cost, reduced-feature test equipment substitute the need for the primary products of these vendors. Like in the case of VoIP, some services such as Skype are free of cost and hence end-users fail to realise the need for test equipment.
"While test equipment vendors are working towards educating and increasing awareness among end-users of test equipment, the absence of a clear set of standard testing metrics and performance values that service providers can refer to is an additional cause for concern," notes Frost & Sullivan's (http://testandmeasurement.frost.com) Research Analyst Team.
"As there are no set of specific tests that vendors can deploy while testing networks, they are facing questions from service providers regarding what they are supposed to test, how the test should be conducted and which results are acceptable and which are not," Frost & Sullivan adds.
Hence, while the International Telecommunications Union (ITU) is highly respected and is the reference standard for market participants, there is an overwhelming need for the European Telecommunication Union and other forums to develop interoperability tests and reference documents that provide a benchmark for the quality of service to be delivered to customers.
In relation to the technology trends, IPTV, which uses Internet Protocol to distribute video/television signals, is gaining momentum. As end-users demand streaming voice, video and data of the highest quality, this technology offering is creating a good market opportunity for test equipment vendors both at the time of deployment as well as during the functioning of these networks and will contribute to increasing their revenues in the future.
The overall European communication test equipment market totalled $311.1 million in 2004 and is likely to reach $580.5 million in 2008. Among the product segments, demand for fibre optic test equipment (FOTE) and digital subscriber line (DSL) test equipment was the highest. DSL, however, is the most popular access technology in Europe and demand for DSL test equipment is thus likely to show a strong increase.
"Convergence and consolidation are the buzz words in the communications industry and end users are looking for one-stop test equipment, which tests all types of networks," says Frost & Sullivan. "Further, as interoperability is a key issue when carriers want to offer value-added services with their networks, vendors will have to develop open-ended solutions that are compatible with other vendor solutions."
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the Strategic Analysis of the European Communications Test Equipment Market, then send an e-mail to Magdalena Oberland, Corporate Communications, at magdalena.oberland@frost.com with the following information: your full name, company name, title, telephone number, fax number, e-mail address and source of information. Upon receipt of the above information, an overview will be sent to you through e-mail.
Background
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
Media Contacts:
Europe:
Magdalena Oberland
Corporate Communications
P: +44-(0)-20-7915-7876
E: magdalena.oberland@frost.com
Americas:
Tori Foster
Corporate Communications
P: +1-210-477-8448
E: tori.foster@frost.com
Asia Pacific
Donna Jeremiah
Corporate Communications
P: +603-6304-5832
E: djeremiah@frost.com
India:
Surbhi Dedhia
Corporate Communications
P: +91-22-2832-4705 Ext: 131
E: sdedhia@frost.com
Australia:
Sharmin Jassal
Corporate Communications
P: +61-2-8247-8900
E: sjassal@frost.com
List of keywords in this press release: communication test equipment, Europe, asynchronous transfer mode, ATM, synchronous optical network, SONET, gigabit Ethernet, GbE, 10 gigabit Ethernet, 10GbE, Internet protocol, IP, voice over Internet Protocol, VoIP, IP multimedia subsystem, IMS, Internet Protocol television, IPTV, international telecommunications union, ITU, fibre optic test equipment, FOTE, digital subscriber line, DSL, DSL test equipment, research, information, market, trends, technology, service, forecast, market share
List of key industry participants: Acterna, Aeroflex, Agilent, Ando, Anritsu, Consultronics, Digital Lightwave, Empirix, EXFO, Finisar, Fluke Networks, Ixia Communications, JDS Uniphase, Livinsgton, Navtel, NetTest, Network General, RADCOM, Shenick Systems, Sunrise Telecom, Tektronix Inc., Tempo, Teradyne, Terawave Communications, Trend Communications, Willtek Communications GmbH
Source: prnewswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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