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Frame relay services to grow in Asia-Pacific region

Frame relay services to grow in Asia-Pacific region

Strong growth in the market for frame relay services is expected to continue in the Asia-Pacific region for the next four or five years, according to the Yankee Group in its recent research report.

The $US415 million revenue in the regions' frame relay market is to reach more than $US3 billion in 2002, the report predicts.

So far, Asia-Pacific service providers have seen a three and fourfold increase in their revenue from 1997 to 1998. While regional providers on an individual basis experienced growth between 40 and 100 per cent, Telstra's frame relay service saw a tripling of its revenue from 1997 to 1998.

The 15 per cent decline in price of frame relay services has been reported by Yankee Group to be the major factor contributing to the success in the region.

Other improvements to the frame relay services over the past two years include greater network reliability, better quality of service, higher access speeds and port speeds. Service-level agreements have been introduced, while carriers are aiming at improving back-up capabilities.

Deployed mainly as a leased-line, a frame relay network is most frequently driven by LAN interconnections and file transfers in Asia. The Internet access, transmission of SAP enterprise resource planning application data, and Lotus Notes databases are expected to power the next stage of growth.


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