digital loop carrier market strategies and forecasts, 2001 ... · pdf filedigital loop carrier...

Digital Loop Carrier Market Table of Contents / List of Tables and Figures

Copyright 2001, WinterGreen Research, Inc. TOC-1

www.wintergreenresearch.com Tel 781-863-5078 email: [email protected]

Lexington, Massachusetts

Digital Loop Carrier Digital Loop Carrier Market Strategies Market Strategies and Forecasts, and Forecasts,

20012001--20062006

Table of Contents

EXECUTIVE SUMMARY ES-1

1. DIGITAL LOOP CARRIER MARKET DESCRIPTION 1-1





1.1 Market Condition 1-1

1.2 Telecom Markets 1-1

1.3 Telecommunications Industry Shifts 1-2

1.4 Point Of Presence 1-4

1.5 Evolution of the Last Mile 1-5

1.6 Distinct Access Systems 1-7

1.7 Combined Voice And Data 1-8

1.8 Reduced Complexity 1-8

1.9 Broadband Implementation By Incumbent Service Providers 1-9

1.10 Upgrades to Existing DLCs 1-10

1.11 Integrated Multimedia Services 1-10

1.12 Integrated Video Services 1-11

1.13 Digital Loop Carrier product Positioning 1-11

1.14 RBOC Use of Digital Loop Carriers and XDSL 1-12

1.15 Bundled Services 1-14

1.16 DLC Functions 1-14





1.17 Design Solutions 1-15

1.18 Coaxial Cable Internet Competition 1-16

1.19 Copper Loop Conditioning 1-16

2. DIGITAL LOOP CARRIER MARKET FORECASTS 2-1

2.1 DLC Market Driving Forces 2-1

2.2 Digital Loop Carrier Competitive Forces 2-2

2.3 Digital Loop Carrier Customer Demands 2-4

2.4 Digital Loop Carriers Market Shares 2-7

2.5 Pricing 2-11

2.5.1 DLC Pricing Variables 2-11

2.5.2 Alcatel Pricing 2-12

2.5.3 Lucent Pricing 2-13

2.5.4 AFC pricing 2-13

2.6 Digital Loop Carrier Market Forecasts 2-14

2.6.1 Penetration Analysis 2-14





2.6.2 Large Digital Loop Carriers 2-17

2.6.3 Small Digital Loop Carriers 2-19

2.6.4 digital loop carrier forecast 2-21

2.6.5 replacement market 2-23

2.7 Regional Analysis 2-25

2.8 Digital Loop Carrier Market Partnering Issues 2-31

2.9 Voice and Data Services Market 2-32

2.10 Market Segmentation 2-33

2.10.1 Business Markets 2-33

2.10.2 Residential Markets 2-34

2.10.3 Potential Customers / Target Market 2-34

2.10.4 Small Telco Target Markets 2-38

2.11 The Internet And Digital Loop Carriers

As A Market Force In Local Access 2-38

2.11.1 Global Economy 2-39

2.11.2 Intensifying Competition On A Global Scale 2-41

2.11.3 Business Forces Driving Change 2-43

2.11.4 Pace Of Technological Change 2-43

2.11.5 Response To Change 2-44

2.12 Circuit Networks Vs Packet Networks 2-45

2.12.1 Convergence Of Voice And Data 2-46

2.12.2 End-To-End Internet Solutions 2-46





2.12.3 Rapid, Flexible Deployments 2-47

2.12.4 E-Services 2-48

2.12.5 E-Services Partnering 2-49

2.13 Internet 2-52

2.13.1 Web Based Supply Chain Exchanges 2-53

2.13.2 Exchange Infrastructure Functionality 2-54

2.13.3 Internet Explosion 2-55

2.14 Internet Users 2-56

2.15 Need For Digital Loop Carriers 2-57

2.15.1 Web Lifestyle 2-59

2.15.2 Time To Market Issue 2-59

2.15.3 ATM Packet Networks 2-60

3. DIGITAL LOOP CARRIER PRODUCT DESCRIPTIONS 3-1

3.1 Overview 3-1

3.2 Multiservice Digital Loop Carriers 3-3

3.3 Alcatel 3-5

3.3.1 Integration of DSL into Litespan 3-6

3.3.2 Higher Density On Voice And DSL 3-6





3.3.3 Derived Voice over DSL 3-7

3.3.4 NGDLC to NWDLC 3-7

3.3.5 Alcatel Litespan Positioning 3-8

3.4 Nortel AccessNode 3-8

3.4.1 Nortel AccessNode Key Benefits 3-9

3.5 Lucent AnyMedia® Access System 3-12

3.5.1 Lucent Technologies AnyMedia Benefits 3-13

3.5.2 COM101 Circuit Pack 3-15

3.5.3 The Fibre-to-the-Curb, Building and Home 3-16

3.5.4 Full Service Access Network 3-17

3.5.5 AnyMedia Access System Application Packs 3-19

3.5.6 Lucent AnyMedia 3-20

3.5.7 Lucent SLC LineReach 3-22

3.5.8 Lucent DDM-2000 FiberReach Narrowband Shelf 3-22

3.5.9 Lucent / Copper Mountain Networks 3-23

3.5.10 Lucent DLC Product Strategy 3-23

3.5.11 Lucent AnyMedia Access System 3-24

3.6 Advanced Fibre Communications (AFC) Products 3-24

3.6.1 UMC 1000 3-25

3.6.2 Custom ASIC 3-25

3.6.3 The UMC1000 Multi-Service Access Platform 3-26

3.6.4 Design Philosophy 3-27

3.6.5 AFC's ONX1012® Optical Network Access System 3-29

3.6.6 UMC 1000 System Expansion 3-29





3.6.7 UMC 1000 Remote Subscriber Terminal (RST) 3-30

3.6.8 UMC 1000 Media Fiber Optic Transport 3-30

3.7 Marconi / RelTec 3-32

3.8 Fibex / Cisco 3-33

3.9 Redback Networks 3-35

3.9.1 Redback Subscriber Support System 3-35

3.9.2 ASICS 3-36

3.9.3 Redback SmartEdge Family 3-36

3.9.4 ADC and Redback Networks

SONET and IP Transport Solutions for Cable Market 3-37

3.10 Next Level Communications 3-38

3.10.1 Flexible-Integrated System. 3-38

3.10.2 Broadband Digital Terminal

3.10.3 Universal Service Access Multiplexer 3-40

3.10.4 Broadband Network Unit. 3-40

3.11 Accelerated Networks Switched VoDSL 3-41

3.11.1 Multiservice Broadband Access 3-42

3.12 Infinitec Inteleflex DLC System 3-43

3.13 Redback Subscriber Management System 10000 3-43

3.13.1 Parallel Switch Fabric 3-44

3.13.2 Direct Processing Architecture 3-44

3.13.3 Carrier-Class Redundancy For Mission-Critical Networks 3-47





3.13.4 Multiple Service Aggregation 3-49

3.13.5 Multiple Aggregation for the Mega-POP 3-50

3.14 DLCNetwork Management Systems 3-57

3.14.1 Nortel Networks DLC Open Network Management System 3-58

3.14.2 Next Level DLC Network Management Systems 3-58

3.14.3 Alcatel Access Management System 3-59

4. DIGITAL LOOP CARRIER TECHNOLOGY 4-1

4.1 Project Pronto 4-1

4.2 SBC Advanced Data Services 4-2

4.2.1 SBC e-Tone 4-6

4.2.2 SBC's DSL Service 4-8

4.2.3 SBC Fiber 4-8

4.2.4 SBC DSL 4-9

4.2.5 SBC e-tone IBM and E*Trade Strategic Alliance 4-10

4.2.6 SBC Aggressively Migrates To

Converged Voice, Data, Video Network 4-10

4.2.7 SBC Voice Trunking Over ATM 4-11





4.3 Qwest 4-12

4.3.1 Qwest All-Optical Nationwide Network 4-12

4.4 Switch Interfaces Include GR-303 4-13

4.5 V5.2 4-14

4.6 xDSL Infrastructure Issues 4-15

4.7 Architecture Reduces Cost And Complexity 4-17

4.8 End-To-End Solutions 4-17

4.9 Standards-Based, Open Architecture 4-18

4.9.1 International NGDLC System 4-18

4.10 Security 4-18

4.11 Power Considerations 4-19

4.12 Advanced Application Specific Integrated Circuits Architecture 4-20

4.13 System Design And Integration 4-21

4.14 Dense Wavelength Division Multiplexing Technology 4-22

4.15 Sonet 4-22

4.16 Standards-Based Architecture 4-24

4.17 Software And Protocol Stacks 4-24





4.18 Element Management System 4-25

4.19 Equipment Issues / Digitizing Voice Signals 4-27

4.20 Enclosures Outside Plant 4-35

4.20.1 Indoor Cabinets 4-35

5. DIGITAL LOOP CARRIER (DLC) COMPANY PROFILES 5-1

5.1 ADC Telecommunications 5-2

5.1.1 Revenue 5-5

5.1.2 ADC and PairGain Technologies 5-6

5.1.3 Pairgain 5-6

5.2 Advanced Fibre Communications (AFC) 5-7

5.2.1 Advanced Fibre Communications (AFC) 5-8

5.2.2 Advanced Fibre Communications /

Marconi Communications 5-9

5.2.3 Distribution 5-10

5.2.4 Advanced Fibre Communications DLC Network Access System 5-10

5.2.5 Platforms 5-12

5.2.6 Global Presence 5-12

5.2.7 Advanced Fibre Communications Revenues 5-13

5.2.8 Industry Alliances 5-13





5.2.9 Markets And Customers 5-16

5.2.10 Revenue 5-17

5.3 Accelerated Networks 5-17

5.4 Alcatel 5-18

5.4.1 Alcatel Acquisitions 5-19

5.5 Alcatel 5-20

5.5.1 Alcatel Organization / Internet Division 5-21

5.6 Cisco Systems 5-22

5.6.1 Cisco Sales Overview 5-23

5.7 Copper Mountain Networks 5-24

5.8 Efficient Networks 5-24

5.9 Ericsson 5-25

5.9.1 Flexible Access Products 5-26

5.9.2 Ericsson Makes Strategic Investment In Saraïde.Com 5-27

5.9.3 Acquisitions And Investments 5-27

5.10 Infinitec 5-29

5.10.1 Inteleflex™ A New Generation Digital Loop Carrier 5-29

5.11 Lucent 5-30

5.11.1 Company Organization 5-31

5.11.2 Outsourcing Portfolio 5-33





5.11.3 Lucent Customer Base 5-33

5.12 Lucent Acquisitions 5-34

5.12.1 Acquisition Of Excel Switching 5-36

5.12.2 Outsourcing Portfolio Expanded With INS 5-38

5.12.3 Ascend Business Segments 5-38

5.12.4 Nexabit Networks 5-38

5.12.5 Spring Tide 5-39

5.12.6 Lucent Divestiture Of Enterprise And Microelectronics 5-39

5.12.7 Lucent AnyMedia Products 5-40

5.13 Marconi / Reltec 5-41

5.13.1 Global Presence 5-42

5.13.2 Marconi 5-43

5.14 Next Level Communications 5-44

5.14.1 Next Level Communications From General Instrument 5-45

5.14.2 Outsource Manufacturing 5-45

5.14.3 Products 5-45

5.15 Nortel Networks 5-46

5.15.1 Strategies 5-46

5.15.2 Lines Of Business 5-46

5.16 Redback 5-47

5.16.1 Products 5-47

5.16.2 Differentiation 5-48

5.16.3 Customers 5-49





5.16.4 Distribution And Partners 5-50

5.17 Scientific Atlanta 5-51

5.18 Tellabs 5-52

5.18.1 Tellabs Advanced Switch Interfaces 5-52

6. DIGITAL LOOP CARRIER COMPANY STRATEGIC ALLIANCES AND

STRATEGIC POSITIONING 6-1

6.1 Alcatel Technology Agreements With ADC And Adtran 6-1

6.2 Lucent Anymedia Access System 6-2

6.3 AFC EMAX Applications 6-9

6.4 AFC Multi-Year Supplier Contract

With France Telecom For Access Equipment 6-10

6.5 Next Level Communications / Verizon / GTE 6-10

6.6 Next Level Communications / Independent Telephone Companies 6-11

6.6.1 VERIZON / ALCATEL'S ADSL 6-12

6.7 Cisco 6-13

6.8 Fujitsu / AFC 6-15





6.9 DLC Support Services 6-16

6.10 Preferred Vendor Strategy 6-18

6.11 Phased Expansion Of A Network 6-18

List of Tables and Figures

Table 1-1 1-2

Telecommunications Industry Shifts

Table 1-2 1-5

Significant Technological And Architectural Advances

Table 1-3 1-7

Market Environment Driving Increased Use of DLCs

Table 1-4 1-12

Digital Loop Carrier Product Positioning





Table 2-1 2-1

DLC Market Driving Forces

Table 2-2 2-2

Principal Competitive Factors In Digital Loop Carrier Market

Table 2-3 2-3

Competitive Product Positioning For Digital Loop Carrier Markets

Table 2-4 2-4

Digital Loop Carrier Market Success Factors

Table 2-5 2-5

Digital Loop Carrier Customer Demands

Table 2-6 2-6

Digital Loop Carrier Market Positioning

Table 2-7 2-7

DLC Competitors





Figure 2-8 2-9

Worldwide Digital Loop Carrier Market Shares, 2000

Table 2-9 2-9

Worldwide Digital Loop Carrier Market Shares, 2000

Table 2-10 2-11

Digital Loop Carrier (DLC) Market Penetration

Unit Shipment Analysis, United Staes, 2000-2006

Table 2-11 2-12

Digital Loop Carrier (DLC) Data Line Size Market Penetration

2000-2006

Figure 2-12 2-13

Large Digital Loop Carrier Market Forecasts, 2000-2006

Table 2-13 2-14

Large Digital Loop Carrier Large System

Shipments, Units and Dollars, 2000-2006

Figure 2-14 2-15





Small and Mid Size Digital Loop Carrier Market Forecasts, 2000-2006

Table 2-15 2-15

Digital Loop Carrier Small and Mid Size System

Shipments, Units and Dollars, 2000-2006

Figure 2-16 2-16

Digital Loop Carrier Market Forecasts, 2000-2006

Table 2-17 2-17

Digital Loop Carrier Market Forecasts, 2000-2006

Table 2-18 2-18

Digital Loop Carrier Market Dollar Shipment Analysis,

United States, 2000-2006

Figure 2-19 2-20

Worldwide Digital Loop Carrier Regional Market Shares, 2000

Table 2-20 2-21


Figure 2-21 2-22






Table 2-22 2-23


Table 2-23 2-24

Worldwide Digital Loop Carrier

Regional Market Forecasts, 2000-2006

Table 2-24 2-25

Digital Loop Carrier Market Partnering Issues

Figure 2-25 2-26

Internet Access Servioces Market Forecasts, 2000-2006

Table 2-26 2-34

Market Forces For Global Economy

Table 2-27 2-36

Factors Impacting The Level Of Price And Product Competition

Table 2-28 2-37

Response To Competition





Table 2-29 2-38

Business Forces Driving Change

Table 2-30 2-40

Digital Loop Carrier Provider Response To Change

Table 2-31 2-46

E-Services Partnering Strategy

Table 2-32 2-47

Internet Market Driving Forces

Table 2-33 2-49

Web Based Supply Chain Exchanges

Table 2-34 2-52

Major Factors Driving Local Access Value Added Services Markets

Table 2-35 2-53

Key Strategies Of The Internet Digital Loop Carrier Providers

Table 2-36 2-55

ATM Market Impact





Table 3-1 3-3

Attributes of a DLC System

Table 3-2 3-9

Nortel AccessNode Key Benefits

Table 3-3 3-10

Nortel DLC Service Adaptive Access Technology

Table 3-4 3-11

Nortel Networks Universal Edge portfolio

Table 3-5 3-12

Nortel Integrated DLC Services Supported

Table 3-6 3-13

Lucent Technologies AnyMedia Benefits





Table 3-7 3-18

Lucent AnyMedia Access System Building Blocks.

Table 3-8 3-19

Lucent Application Pack Services

Table 3-9 3-28

Unique Design Features of UMC Terminals

Table 3-10 3-39

Next Level Communications Network Elements

Table 3-11 3-46

Redback Subscriber Management System I/O modules Supported

Table 3-12 3-48

SMS Carrier-Class Mission-Critical Network Features

Table 3-13 3-51

Redback Subscriber Management System

SMS 10000 Features and Functions

Table 3-14 3-52





Redback Subscriber Functions

Table 3-15 3-53

Redback Subscriber Management Protocols

Table 3-16 3-54

Redback Subscriber Management System Securi ty

Table 3-17 3-55

Redback Subscriber Management

System Accounting and Network Management

Table 3-18 3-56

Redback Subscriber Management System Advanced Features

Table 3-19 3-57

Software License Configurations





Table 4-1 4-2

SBC Broadband Strategies

Table 4-2 4-3

SBC Broadband Strategic Alliances

Table 4-3 4-4

SBC Corporate Strategy for Data

Table 4-4 4-7

SBC Broadband Applications

Table 4-5 4-7

SBC Advanced Broadband-Powered Services

Table 4-6 4-10

SBC IBM, PeopleSoft, and E*Trade Strategic Alliance

Table 4-7 4-14

V5.2 Benefits And Capabilities

Table 4-8 4-15

Advanced Fiber Communications EMAXT





Equipment Maximization System

Table 4-9 4-16

Copper Line Direct Connect Vs. Shared

Cable Coax Technology And Issues

Table 4-10 4-19

MDLC Power Issues

Table 4-11 4-21

Application Specific Integrated Circuit Categories

Table 4-12 4-23

Carriers Issues for Deploying Fiber Optic

Communication Standards

Table 4-13 4-25

Types of Telecommunications Platform Software

Table 4-14 4-26

Element Management System Solutions

Table 4-15 4-27





DLC Equipment Issues Regarding

Digitizing Analog Voice Signals

Table 4-16 4-28

Multiplexing Equipment Issues

Table 4-17 4-29

T-1 Transmission Defined

Table 4-18 4-30

T-1 vs. DS-1

Table 4-19 4-31

T-1 Evolution

Table 4-20 4-32

Fractional T-1

Table 4-21 4-35

SONET





Table 5-1 5-1

DLC Competitors

Table 5-2 5-8

Advanced Fibre Communications Strengths and

Challenges in DSL Market

Table 5-3 5-14

AFC Strategic Technology Alliances

Table 5-4 5-20

Alcatel Strengths And Challenges in DLC Market

Table 5-5 5-28

Ericsson Portfolio

Table 5-6 5-34

Lucent Acquisitions





Table 5-7 5-42

Selected RelTec Customers

Table 5-8 5-49

Redback Key Customers

Table 6-1 6-2

Lucent DLC Customers

Table 6-2 6-14

Principal Functions Of A Cisco Access Network

Table 6-3 6-17

DLC Strategic Positioning

Table 6-4 6-17

DLC Platform Positioning

digital loop carrier market strategies and forecasts, 2001 ... · pdf filedigital loop carrier...

Documents