IGI Consulting offers explanation of what turned the industry

Aug. 24, 2001--IGI Consulting announces a new study unveiling multiple adverse forces that hit the networking economy at the same time.

Aug 24th, 2001

IGI Consulting (IGIC) announces a new study entitled "Riding the Lightwave Down and Back Up -- An Analysis of What Went Wrong and a Forecast for the Next boom." Clif Holliday of B&C consulting services and author of the report notes there are many causes of the downturn, but the underlying factor has been an over-response to the growth of the Internet.

However, there were multiple adverse forces that hit the networking economy at the same time:

First, there was the general softening of the economy that started in late 2000 and continues into the first half of 2001 and maybe further. Then, there was the failure of a number of the "dot.coms" that had fundamentally flawed business plans, or that were pushed over the edge by the slowing economy.

Also, the major networking suppliers (Cisco, Lucent, Nortel, etc.) were caught in a bind of having just increased capacity and production to meet the high demand that preceded the slowdown. A few of the major vendors were also in an over-inventory position due to their attempts to sell legacy equipment to a market that was demanding the latest of technologies, that were vastly superior, e.g., the difference between first and second generation metro DWDM systems. And finally, the killing stroke was the failure, or virtual failure, of almost all of the data CLECs at virtually the same time.

This report, the ninth report in the Lightwave Network series of reports, reviews the previous market forecasts for the Lightwave Network and revises those forecasts in light of the 2000-2001 downturn. New forecasts are provided for each of the nine areas of the Lightwave Network, as well as an analysis of the downturn. Updated forecasts for the following markets are included; high speed Internet access, XDSL, cable modems, wireless, and satellite.

About IGI Consulting:

For more information about the "Riding the Lightwave Down and Back Up" report or any other reports in the Lightwave Network series of reports, visit www.igigroup.com.

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