ISDN infrastructures lose out in video services market

Enterprises are increasingly moving away from deploying ISDN infrastructures to run their video conferencing facilities. Instead, IP infrastructures and IP-based services are gaining momentum, according to in-Stat/MDR.

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By  Zoe Moleshead Published  August 28, 2002

Enterprises are increasingly moving away from deploying ISDN infrastructures to run their video conferencing facilities. Instead, IP infrastructures and IP-based services are gaining momentum, according to in-Stat/MDR.

The research group estimates that ISDN-oriented video conferencing services revenues will experience a compound annual growth rate (CAGR) of only 6% through to 2006. In contrast, IP-based services will grow at a CAGR of 43.5%, with the market reaching the US$2.5 billion mark by 2006.

“Once a corporate LAN is ready for voice over IP (VoIP), it will be a short step to make segments of that network capable of VoIP services,” says Gerry Kaufhold, analyst, In-Stat/MDR.

The uptake of IP-based services will also be driven by the expansion of Ethernet into metropolitan area networks. This will in turn effect the distribution of live broadcast quality video content over specialised networks, corporate conferencing & collaboration services, and interactive ‘on demand’ streaming applications, says In-Stat.

“Low entry-level cost points for Ethernet solutions for distributing video will impact the existing manufacturers, which currently provide ‘big ticket’ video equipment,” explains Kaufhold.

“Large local and long distance telephone players will [also] need to be on their toes to move with these changes, or face further erosion in the total available market for voice and video services,” he adds.

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