Demand for high-speed
Internet access continues to grow as more and more
consumers work and/or research from home, increase
their business travel, and other such activities.
Dial-up Internet access is no longer a viable option
for a large majority of consumers. Ambient has
created a solution for the MDU market which will
help consumers meet their demand for more broadband.
The deregulation of the telecom industry resulting
from the Telecommunications Act of 1996 as a
whole has created a business opportunity with
new revenue streams for Internet service providers
in building risers, industrial campuses, hospitality
units and garden style complexes.
The MDU/MTU market is composed of four segments.
These segments include:
- Residential
- Commercial
- Hospitality
- Alternative Properties
Residential
MTU/MDUs represent the largest
segment of the MDU market. There are
more than 860,000
residential buildings and apartment
complexes in the US with an estimated 10MM+
tenants.
The National Multi-Housing Council
statistics reports
that over 21 million apartments exist
in the US today and according to the
Yankee Group, over
one-third of all Americans live in
them. International Data Corporation (IDC)
projects
that the number
of home offices will increase from
7.8
million in 1998 to over 20 million by
the year 2004.
No matter which market research firm
you listen to, all point to a massive
residential consumer
base which is growing. Commercial
MTU/MDUs are the second largest market
segment and includes industrial and commercial
real estate ranging from skyscrapers down to
commercial campuses and strip malls. Approximately
60% of all businesses in the US are located in
such MTU facilities. This category is usually
concentrated in downtown areas, business districts,
and industrial campuses. The Building Office
Management Association of America estimates that
there are more than 750,000 multi-tenant commercial
buildings today and that nearly 75% of the population
works in this type of building.
Hospitality
MDU/MTUs are smaller in size than
the above groups but remain a very important
target due to their vast footprint. This market
includes some dormitories, hotels and hospitals.
In the US alone there are more than 4 million
hotel properties and most business travelers
demand high speed Internet connectivity. A year
2000 survey by American Express showed that 65
percent of all business travelers now carry laptops.
Business travelers constitute more than 55% of
hotel occupancy and they now require a high-speed
Internet connection.
Alternative
Property MDU/MTUs is the fourth and most ambiguous
group
which includes industrial
complexes such as nuclear power plants, military
bases/facilities, mixed use buildings, education/campuses,
marinas/train stations, assisted living facilities
and cruise ships. The alternative category represents
ripe “campus” opportunities that
are similar in architecture to garden style MDUs. |
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