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Company and region | GTE Shotgun | Bell Atlantic Middle Atlantic | Bell South South | Pacific Bell California | Southwestern Bell South Central |
ATM UNI | DS-1/DS-3/OC-3/OC-12 | DS-1/DS-3/OC-3 | DS-1/DS-3/OC-3/OC-12 | DS-1/DS-3/OC-3 | DS-1/DS-3/OC-3 |
Service Classes | CBR,ABR,VBR-Rt,VBR-nrt,UBR | CBR, VBR-rt,VBR-nrt | CBR, VBR-rt,VBR-nrt,UBR | CBR, VBR-nrt,UBR | CBR,VBR-nrt |
Customer Network Management | |||||
Backbone Platform | Lucent, Newbridge | Ascend | Ascend | Cisco, Newbridge | Fujitsu |
Frame Relay Interworking | Yes | No | Yes | No | Yes |
Managed CPE | |||||
Number of Backbone Switches | |||||
SVCs | Yes | Yes | 4Q98 | 4Q98 | 3Q98 |
Oversubscription | 200% | None | None | Unlimited | Negotiable |
IMA | Yes | No | No | No | No |
Network Reports | None | Hard Copy | None |
Table 8-1. U.S. ATM service providers (continued)
See the ATM Forum list of equipment suppliers for a complete list of all ATM vendors. U.S. sales of ATM equipment in 1997 were approximately $1 billion. This figure is expected to grow to $3 billion by 2000. Table 8-2 lists the top 12 ATM equipment vendors and their share of the 1997 ATM market. There is a great variety in the prices, reliability, and functionality among the ATM equipment vendors products. Besides the usual evaluation of vendors before purchasing a piece of equipment, ensure the vendor equipment is compliant to all ATM Forum specifications.
Vendor | Market % |
Cisco | 19% |
Newbridge | 16% |
Nortel | 14% |
Fore | 12% |
Bay Networks | 5% |
Ascend | 4% |
Alcatel | 3% |
3Com | 3% |
Hughes | 3% |
IBM | 2% |
GDC | 2% |
Xylan | 2% |
Others | 15% |
Table 8-2. ATM equipment vendors
Figure 8-5. U.S. ATM revenues
Prior to 1998, many ATM specifications were still in the writing stage. ATM vendors either attempted to second-guess the ATM Forum specification committees or just adopted a proprietary solution and went forward with equipment development and deployment. To entice any reluctant buyers, vendors promised to upgrade software and hardware to be specification compliant as soon as the ink was dry on the specs. Now, some of them are finding it very costly and time consuming to upgrade their products. Of course, anyone who purchased the proprietary equipment will have to bear the cost of upgrading their equipment. Save yourself some significant migraine headaches and purchase only specification-compliant equipment from day one.
ATM equipment sales is the lions share of the ATM prize for the next two years as service providers flesh out their network backbones and companies purchase ATM equipment for private enterprise LANs and WANs. Of the estimated $3 billion U.S. ATM market for 2000, ATM equipment will comprise $2.4 billion.
The ATM customer base will grow dramatically between now and 2000. The following discussion concerns the growth in service provider revenues and UNI connections. The dollars do not include the ATM equipment market and the expansion of service provider networks. That information is included elsewhere in total ATM revenue projections.
U.S. ATM service revenues have steadily climbed for the last five years. See Figure 8-5. The ATM customer base is steadily increasing as users migrate from legacy systems. There are about 40 U.S. customers per service provider. ATM revenues are about $350,000 per customer per year. Total worldwide ATM customer base at the end of 1997 was 1,000 or less customers. Between 1998 and 2000, U.S. ATM networks will add 1,200 new customers.
Outside the U.S., total ATM service revenues will increase from $65 million in 1997 to $650 million by 2000. Although Canada was second to the U.S. for ATM deployment in 1997, the region of greatest growth from 1998 to 2000 will be Asia/Pacific, second only to the U.S.
Table 8-3 lists the top seven 1997 ATM revenue producing service providers. Not surprisingly, due to its extensive national presence in communication markets, AT&T has the lions share of the domestic ATM market. If everyone shopped for the best price though, AT&T would not be leading the pack.
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