Asia Express - East Asian ICT
Data Communications - Samsung Pulling out of Broadband Segment
October 20, 2004
Samsung has announced that it plans to slowly phase out of the global ADSL (Asymmetric Digital Subscriber Line) market. Owing to intense price competition and a virtual lock that other makers have on development resources for new wireless broadband technologies, Samsung has decided to discontinue investment in R&D for ADSL.

 

Samsung has consistently dominated the Korean ADSL market, but many attribute its domestic success to the government support it receives. Samsung has never been able to fully break into the international ADSL market. The company's primary equipment offering -- DSLAM (Digital Subscriber Line Access Multiplexer) -- has fallen behind that of competitors such as Alcatel, UTStarcom, and Huawei.

 

Some have stated that Samsung's departure will be slow and probably incomplete, indicating that Samsung may maintain its current DSLAM offerings, and turn to outsourcing to fill orders. In such a case, Taiwanese players would see opportunities open up to vie for ATM (Asynchronous Transfer Mode) and IP (Internet Protocol) DSLAM orders.