Stuttgart, Germany – 30th June 2003 - InfoCom forecasts significant growth for data communications services in the period to 2008 in the UK, France and Germany. The 2002 market value for data communications services was €2.7bn in France, €5.4bn in Germany and €5.8bn in the UK. CAAGR (Compounded Average Annual Growth Rate) for the period from 2002 to 2008 will be 8.3% in France, 6.7% in Germany and 5.5% in the UK.

Managed data services (VPN, IP-VPN, IP security etc.) will also experience solid growth. On the other hand, leased lines and even more switched data services (X.25, Frame Relay, ATM etc.) will record declining revenues. Managed data services, currently the second largest segment after leased lines, will consequently grow to become the largest segment by 2008.

The two broadband access technologies, xDSL and cable modems, represents a new segment for data communications, which means residential revenues are now included in the total. Very strong growth, albeit from a small base, will be observed for this segment, with CAAGR from 20% (for xDSL in Germany) to 54.2% (for xDSL in the UK).

The growth of data communications revenues will stem mainly from increasing data traffic (Internet, broadband applications etc.) and the convergence of voice with data applications. In addition, the implementation of new technologies (xDSL, cable modems) will in effect cannibalise revenues previously attributed to the voice/PSTN sector (i.e. Internet access via dial-in modems and ISDN). This will mean extra data communications revenues whether or not data traffic grows as much as anticipated.

This market outlook comes from the 2003 Teleseeq, InfoCom’s market intelligence portal. Teleseeq is available on-line and provides fundamental market data for the multimedia and telecoms industry in four categories: equipment market, services market, companies’ key figures and socio-economic data. Teleseeq provides in addition company profiles and other customised reports.

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