Wholesale ATM and Frame Relay Market

Published by: Frost & Sullivan

Published: Aug. 18, 2004

Table of Contents

Abstract

Internet protocol virtual private networks (IP VPNs) and multi protocol label switching (MPLS) based networks have been creating quite a buzz in the asynchronous transfer mode (ATM) and frame relay market. Capable of providing phenomenal cost savings, these applications have encouraged a number of enterprises to migrate from their legacy networks. As IP-based applications continue to find rapid acceptance among major corporations, both international and U.S. carriers are challenged to keep pace. Even as carriers contend with insufficient management and technical expertise, mounting security concerns, and lack of trouble shooting tools, the ever-increasing demand for next generation networks is expected to lure investors.

This research from Frost & Sullivan evaluates the current and future prospects of the ATM and frame relay market in two main sectors: wholesale ATM and wholesale frame relay. It reviews the key telecommunications requirements in the United States, and evaluates the competitive profiles of leading participants. Additionally, it offers a comprehensive insight into the drivers and restraints affecting the market and outlines strategies that are anticipated to enable stakeholders to maximize their profits.

Providing Clear Migration Paths and Translation Services Expected to Drive Adoption Rates

There is a growing demand among customers for carriers capable of seamlessly transcending into next generation networks. Increasingly, carriers are being challenged to provide translation services that enable applications to "talk" with each other. This is likely to ensure the smooth transition of legacy applications to IP- and MPLS-based applications. Major network backbones are likely to be run on IP and MPLS, as ATM and frame relay are used for access to local networks and as edge technologies.

"Carriers need to make a conscious effort to invest in technologies that meet customer requirements," says the analyst. "Companies that are sensitive to customer demands are likely to prove successful."

Customers Focus on the Value Proposition and Return on Investments of Emerging Technologies

The large investments required to replace older equipment with IP-based networks has proved to be a major challenge to most carrier companies. As companies emerge from the dotcom bust and the economic downturn, capital expenditures are undergoing intense scrutiny. "With network planners being expected to justify each dollar spent, the uptake of newer technologies is likely to take a backseat," notes the analyst. "Since they have invested billions of dollars into these networks, most carriers are reluctant to make additional investments and prefer to continue using older, proven technologies."

Yet another factor hindering adoption is the difficulty in getting trained professionals. There are very few professionals with a thorough working knowledge of the latest technologies, and training them is likely to be an expensive proposition for most carriers.

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.