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Broadband...ADSL the Dominant Access Technology – Market & Growth

The ADSL (Asymmetric Digital Subscriber Line) segment will be deployed mainly by residential users and small and medium business in Asia/Pacific, resulting in highly favourable subscriber base and thus equipment deployment in the next few years. According to IDC’s recent report "ADSL Network and CPE Market Forecast & Analysis, 2001-2006", IDC estimates that by 2006, the overall ADSL equipment market in the region will be US$963.2 million, representing a CAGR (2001-2006) of only 1%. Of this total, ADSL modem CPEs will generate revenue of US$409.6 million and DSLAM lines will show revenues of US$553.6 million.

In Asia/Pacific, the growth in Internet access is driving demand for always-on, faster broadband services, said Sandra Ng, Vice President of IDC Asia/Pacific’s Communications and Peripherals Research. Adding to this, governments in the region such as South Korea have emphasized the importance of broadband in increasing their country's competitiveness in the global economy and as an aid to driving economic activity. The number of early adopters of technology in the region is also quite high, helping to feed the overall demand for broadband services.

Although there are a variety of access technologies available in Asia/Pacific, including ADSL, cable modem access, metro Ethernet and FWA, ADSL remains the preferred medium. In 2001, about 65% of all broadband subscribers in the region used ADSL, with cable modem a distant second at about 32%.

"Although ADSL services will remain the access technology of choice in Asia/Pacific, the growth rate of new subscribers in larger markets will slow as countries reach saturation points and as other access technologies, particularly metro Ethernet, gain steam," added Ms. Ng.

The Collaborator – Background:

Collaborator is headquartered in Korea, and is represented through business centres in Korea, USA, Vietnam, and China through sales subsidiaries and distributors over those countries.

Collaborator is leading supplier & provider of Optical or Copper Cables and Modules, Wire or/and Wireless Communication Equipment & Management systems across both the optical & network of communications.

Collaborator provides operator, equipment, and enterprise service providers with the best solutions troubleshoot and optimize performance where customer needs.

They employ the best designing engineers who can provide top R&D services under company's effective management. We are continuously developing innovative products to meet the ever-changing market demands are guaranteed

• To provide a growing range of complete solutions based on the latest technologies (IT, Wireless as Micro Wave just in time , Wire-line, Broadband  V/UHF and Enterprise networking).

• They help provide an outstanding end-to-end Service & Reliability experience from consulting through deployment and support (LANs, WANs, ADSL,VDSL, Microwave dish & transceiver ,Cables, ISDN, T1, T3, Data Transformer, ATM, CCTV, Cable TV , Voice-over-IP supporting two-way interactive video for distance, etc Installation) other technologies and allows bridging to other frame relay clouds.

Note:    They can install a microwave dish and transceiver of any size (T1, DS-3 and larger) linking your building to one of broadband sites giving you route diversity, redundancy, and protection from unforeseen outages. We can also deliver a fully operational microwave link for back-haul, redundancy and last-mile solutions.

The Project:

The project is to manufacture ADSL Modems used in the Broadband networks provided by various operators like India. This connects the User’s PC with the telephone lines of  the service provider.The biggest buyer in India is the BSNL/MTNL Combine followed by AIRTEL and others. The advantage is that with a splitter one attends to phone calls as well without disconnecting from the internet.

• The Project Cost is US$ 3 million using new equipment.

• The Plant and Machinery are SMD Assembly lines and testing equipment.

• The project cost could reduce by 30% (about) if refurbished lines are bought.

• These lines could be used for assembly of other SMD based products.

• Specifications:  As per ADSL protocols accepted by DOT India and are of same standard all over. 

• The project is a Joint Venture with a partial export. 

• Capacity of Production: 750,000 annually

• Component Pricing : US$15  (approx. Rs.675/+) per modem – but this can vary on the quantity reqd. 

• Being an automated line the skilled labour could be restricted to 10. 

• Based on the indication given the conversion cost would be around Rs 400 to 450 per modem. 

• The current bulk selling price to BSNL is Rs.1600 per modem and they sell to customer at Rs.2000. 

• The margin could be around Rs. 475/= to Rs.500/- per modem. 

• The profits are high. 

• 15% of the production may be sent back to Korea. This could be even higher.

Our role:

We have got the technology and collaboration offer with us. We have also identified second hand equipment for those who want to keep the project cost low. This is a wonderful project. The key is fast implementation of the project. Prospective entrepreneurs can get a project report immediately from us after paying nominal charges.

If you are interested email us immediately.