Hotel Broadband Market Scaling Back In 2001, But Poised For Rebound Next Year

SCOTTSDALE, AZ -- (BUSINESS WIRE) -- April 4, 2001 -- A drastic tightening of capital markets is forcing a slowdown in the deployment of broadband connectivity in hotels for guests and a shakeup in the market, according to Cahners In-Stat Group (www.instat.com).

However, despite this, the Multi-Hospitality Unit (MHU) broadband hardware and services market will resume robust growth next year and surge from $59 million in 2000 to $679 million in 2005, the high-tech market research firm says.

The MHU broadband market arose as business travelers relied more heavily on the Internet to send and receive e-mail and tunnel into corporate virtual private networks. Hotels and service providers have responded by delivering broadband via wired and wireless technologies to guestrooms, lobbies, meeting rooms and even at poolside.

Hotels benefit through increased guest charges, e-commerce revenue, market differentiation, and increased customer loyalty. A typical in-building MHU deployment consists of a no-new-wires implementation where services are delivered to the guestroom over existing wires.

The system includes a guestroom access CPE which is fed into a central aggregation device that is linked to a remote service provider by a dedicated line connected to the local point-of-presence often through the local central office (CO).

In-Stat's research also found:


The market is experiencing attrition of providers as many companies cannot survive the current tightening of capital.
The MHU broadband market will slow in 2001 as many players scale back deployment schedules.
By 2005, over 10,000 MHU properties will supply broadband connectivity to guests.

The report, Wet Bars, HBO, and High-Speed: The Hotel Broadband Market, (No. MU0103SG) includes forecasts of MHU broadband implementations, hardware and service sales through 2005. It also includes analysis of deployment strategies, service provider and hardware players, technologies and services.

The report contains a look at emerging business models, barriers the industry must overcome and market dynamics in international markets. To purchase this report, or for more information, please visit http://www.instat.com/catalog/cat-mtb.htm#mu0103sg or contact Courtney McEuen at 480/609-4533; cmceuen@instat.com.

The report price is $3,995 USD.

Cahners In-Stat Group (http://www.instat.com/) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

In-Stat is a unit of Cahners Business Information (www.cahners.com), a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.

Logos, product and company names mentioned are the property of their respective owners.

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