Report focuses on ATM market opportunities around the world

Asynchronous Transfer Mode (ATM) is competing with Internet protocol (IP), frame relay, and other technologies and protocols for attention in markets outside of North America. Allowing the flexibility to merge telephony and data communications, the technology is still in a maturing process and not fully understood by much of the service provider community or, in some cases, by the vendors themselves. So says Communications Industry Researchers Inc. (CIR), a Virginia-based communications research company, in one of a series of mini-reports on ATM entitled ATM Around the World.

In the past, says CIR, the emphasis has been on selling ATM as a high-speed data service. In the future, the marketing orientation is expected to increasingly reflect ATM`s ability to allow many types of services to run between users using the same network structure. ATM`s power lies not only in the bandwidth of the native cell-relay service it provides to the end-user, but in the capability to carry a variety of services with the most efficient use of bandwidth.

ATM in Europe

Although North America is the leader in ATM production and usage, the technology is just as evident in the European environment--although with several distinctive characteristics. ATM equipment and service providers need to be aware of these differences.

First, despite attempts at unification in Europe, it remains a region of distinct countries, which are not on equal technological playing fields. These technological differences affect the demand for ATM products and services. Attempts to unify Europe may be a bright spot for ATM since the building of a sophisticated pan-European infrastructure appears necessary.

Second, although the old monopolistic structure of European telecommunications is being dismantled, national markets still remain dominated by the old postal, telegraph, and telephone companies. As a result, private lines have been priced high and public networking solutions, such as Integrated Services Digital Network, have received favorable pricing treatment. However, strides are being made in European ATM technology, such as WorldCom`s pan-European fiber-optic cable system, offering ATM services internationally.

ATM in Asia and the Pacific Rim

Asia and the Pacific Rim are even more diverse in terms of technology acceptance than Europe, and the region lacks Europe`s interest in becoming politically integrated. Factors to understand in this ATM market include the role of multinational companies. With the exception of Japan, Australia, and Korea, most of Asia and the Pacific Rim lack any large businesses that are enthusiastic proponents of ATM. Most major users of ATM are likely to be local offices of North American, Japanese, and European multinationals. This is similar to the influence of the U.S. multinationals in Europe during the 1970s, which led to national governments liberalizing their regulation of that sector.

ATM in Latin America

The slowest migration of ATM has been in Latin America, says CIR. But even there, ATM awareness is increasing and expected to follow the other international market segments. Here, as in Asia, the main users of ATM products and services are likely to be local branches of multinationals.

Yet, there is currently little activity in the ATM sector in Latin America; most is confined to limited deployment in Colombia, Chile, and Mexico. Because of the primitive state of the market in this region, CIR forecasts substantial future growth.

Although ATM has conceded much space to other technologies such as frame relay, IP, and Ethernet, the technology refuses to retreat. Public and user awareness has increased significantly to realize the value and benefits of mature, stable ATM networks. In particular, CIR believes some hot new market opportunities will lie in voice-over-ATM and broadband wireless communications.

A complete five-part series of mini- reports examining the opportunities for ATM technologies and services is available from CIR by calling (800) 984-0245 or fax: (804) 984-0247. u