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MDU Broadband
Providers Seek Profitability in Wake of Failed Business Model
SCOTTSDALE, Ariz., September 5,
2001 - The inability to capture a substantial subscriber base
has forced in-building broadband providers to seek additional means
by which to achieve profitability according to Cahners In-Stat Group
(http://www.instat.com). The
high-tech market research firm reports that providers, in the wake
of a failed business model, are working to introduce a variety of
entertainment options to their service package. While offerings
like gaming will deliver some increased revenue potential, providers
will bank more heavily on voice and video offerings. "The in-building
broadband delivery model was created as a more cost-effective means
of bringing broadband services to tenants of multi-tenant buildings.
However, despite the cost savings of an on-premise Point of Presence
(POP), many of the providers in this market are struggling to generate
revenues necessary to make the venture profitable," says Amy
Cravens, Industry Analyst
with In-Stat's Multi
Tenant Broadband service.
In-Stat has also found that:
- Identifying target audience trends
is even more crucial in this soft economic market. When service
providers are developing marketing campaigns, it is important
to direct the message toward the upscale renter market.
- Asia currently represents the largest
Multi-Dwelling Unit (MDU) market due to the architectural, demographic,
and technology trends in that region. With a much higher percentage
of the population inhabiting MDUs and the recent push for broadband,
these markets are primed for in-building deployments.
- Despite the difficulties encountered
in the MDU broadband market, revenue growth is strong over the
forecasted 5-year period with the worldwide market for services
and hardware projected to grow from $393 million in 2001 to $3
billion in 2005. The direction and nature of this growth, however,
has shifted considerably between 2000 and 2001. A significant
portion of the total MDU revenue in 1999 and 2000 streamed from
hardware sales, whereas during later years, equipment revenues
decline considerably as a portion of overall revenue.
The report, "Bringing
Broadband Home: the MDU Market for Broadband Services"
(#MU0107SG), discusses the market for in-building broadband delivery
to the multi family or MDU environment. The report explores the
unique forces that creates and differentiates this market and discusses
how service and equipment providers have responded to these various
forces. Profiles of leading players and a 5 year service & hardware
forecast are included. To purchase this report, or for more information,
please contact Courtney McEuen
at 916.984.1179; cmceuen@instat.com.
The report price is $3,495 USD.
Cahners In-Stat Group (http://www.instat.com)
covers the full spectrum of digital communications research from
vendor to end-user, providing the analysis and perspective that
allows technology vendors and service providers worldwide to make
more informed business decisions.
In-Stat is a unit of Cahners Business
Information (http://www.cahners.com),
a leading provider of critical information and marketing solutions
to business professionals and a member of the Reed Elsevier plc
group.
For more information,
contact:
Amy
Cravens, Industry Analyst - Multi
Tenant Broadband
Phone: 480.609.4545
Email: acravens@instat.com
Kirsten Skedd,
Marketing Manager
Phone: 480.609.4534
Email: kskedd@instat.com
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