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ARE NEXT GENERATION SWITCHES KILLING DIGITAL SWITCHING?

New Study Reveals…

Bethesda, Maryland (December 16, 1999) Dittberner Associates, Inc. announces an in-depth Multi-Client Study

"Next Generation Switches for Public Networks
& Worldwide Digital Switching Status".

A recently published report from Dittberner Associates, Inc dispels the fear that digital central office switching is dead. According to their report, shipments of digital switching capacity (ports) did not peak in 1998 as many anticipated, and may not even peak in 1999 despite the huge amount of hype concerning Next Generation multi-service switching systems at industry conferences and in the trade press.

"Next generation systems aren't ready for prime time except for use by smaller CLEC'S", according to Mr. Donald Dittberner, President of the firm. "Few firms are deploying sizeable numbers of such switches, and several that have, now wish that they had waited", he continued.

"Clearly, a number of architectures have emerged that have the capacity to handle voice as well as data and IP traffic on a united IP or ATM backbone. However, reliability, management and billing issues still will delay rapid deployment of Next Generation PSTN switching systems", declared Mr. Dittberner. He continued…"over 30 Next Generation switches are now offered on the World Market, but few have any significant installed base. Most telecom service providers plan and should commission extensive lab and field trials over the next year, but avoid major deployment roll-outs".

The Dittberner publication profiles in-depth, 31 Next Generation switches available on the market. They offer the telecom operators interesting choices in Next Generation switches. "One example is, Salix Technologies, Inc, a Gaithersburg,

Press Release
Dittberner Associates, Inc. (cont.)
Page 2

Maryland company, which has introduced the ETX 5000, a class 4/5 and tandem replaceable switch which enables interconnection of the Public Switched Telephone Network (PSTN) and the Packet Data Network (PDN), providing telephony services, including IP telephony, as well as data networking in a one box solution. This solution varies considerably from other vendor offerings, many of which typically offer independent add-on equipment for existing digital switching systems", said Dr. Lorenz Beug, Vice President of Technology for Dittberner Associates…" even newly established (competitive) carriers usually cannot freely select the network architecture that appears to be most cost effective for combining voice and IP traffic. Such carriers cannot operate alone in the world and must inter-work with other already established carriers throughout the world. While new carriers may have more latitude in selecting a multi-service network architecture, this need for inter-working imposes certain substantial constraints on the final choice".

In this report, Dittberner Associates identified key "structural trends" in industry organization:

  • More Strategic Partnerships with Key Customers
  • Less Reliance on Supplier Internal Resources for Development
  • All Significant Vendors of PSTN Switching Equipment Moving to Provide Packet Exchanges
  • New Telecom Service Providers of all Types Proliferating Rapidly
  • Telecom Operators Undergoing Supplier Rationalization
  • New Major Operators are Introducing New Network Architectures
  • Optical Switching May Reduce Packet Switched Traffic Handling Overall
  • Carriers' Carrier are Becoming a Significant Factor in Industry Structure
  • Consolidation of Major Service Providers (for both wireline and wireless fields)

"Next Generation Switching Systems for Public Networks & Worldwide Digital Switching Status", is a 1,414 page two volume report. Volume One examines trends in both the PSTN and IP networks, network services, and standards, as well as a comprehensive overview of 31 Next Generation multi-service switches and associated network architecture. The report provides forecasts of the cost-based price of Next Generation switches over the next eight years.

Volume Two
provides a unique source of detailed data on the installed and on-order positions for all digital switches worldwide, presented by supplier, country and operator. It contains exhaustive analyses of the competitive positions of all known digital switch suppliers.

or more information contact Sales at:
Dittberner Associates, Inc.
e-mail: sales@dittberner.com
www.dittberner.com
Tel 1 301 652 8350


Dittberner Associates, Inc. is an international market research and consulting firm specializing in the analysis of advanced technologies for the global public telecommunications network. Through its multi-client study series, THE Dittberner PERSPECTIVE, and custom studies, the company provides guidance in many areas of the telecommunications industry including: technology assessment and forecasting, market requirements analysis and market forecasts for telecom equipment and services, public and private network planning, corporate and business planning, new venture / new business development, and tariff and regulatory policy formulation assistance. Fore more information, visit the company's website at www.dittberner.com

Dittberner Associates, Inc. 4641 Montgomery Avenue, Suite 100, Bethesda, MD 20814 USA

Telephone: +1 (888) 652-8382 Fax: +1 (301) 657-8084
E-mail: sales@dittberner.com

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