Editors Note: We received this set of materials from Ms. Jennifer Minx referenced below. Both papers are préces of very detailed research projects available in full only through purchase. The quality of research is excellent and is certainly relevant to the academic establishment's understanding of Distance Learning. This is not an endorsement of this or any marketing firm. However, we respect the quality and depth of information presented and deemed it to be of considerable, and timely value to us all.

AN ANTONIO - The outlook for distance learning has changed significantly with the advances in the telecommunications and computing technologies that allow interactive, real-time training. The distance learning systems market is growing rapidly, with a number of new developments particularly in the Internet-based IDL (Interactive Distance Learning) and Broadband segments.

The adoption of H.323 standard has sparked interest in Internet protocol (IP) for video transport. "In another two years, a notable portion of distance learning services is likely to take place over IP," says Frost & Sullivan telecommunications industry expert Alpa Shah.

According to Frost & Sullivan's (www.frost.com) latest strategic research, U.S. Distance Learning Systems and Services Markets, total DL market revenue is projected to reach approximately $3 billion by 2005, maintaining a 21 percent growth rate throughout the 1995-2005 forecast period.

With the integration of IP multicasting capabilities, large telecommunications providers are now searching to acquire, merge, or ally with companies that can add value and integrate end-to-end solution components.

Application demands requiring increased bandwidth are paving the way for many distance learning markets. The transition to asynchronous transfer mode (ATM) transport with MPEG-2 compression in broadband, packet-switched delivery in narrowband, and IP multicasting in satellite communications have all increased adaptability and feasibility of DL product deliverables.

"Successful companies will monitor and implement the most cutting edge technologies. Those that fail to do so will quickly fall out of competition," Shah says.

From corporate boardrooms to kindergarten classrooms, DL caters to a variety of end-users. Although there is a growing industry consolidation trend, systems, service and content providers are hard pressed to accommodate the multitude of end-user segments. Hence, many companies are utilizing Web-based training and broadband equipment to exploit niche markets.

While industry consolidation continues and technology prices fall, service and systems providers are searching for appropriate data transfer content. End-user DL familiarity is increasing, yet meager budget allotments by corporations and schools require DL providers to prove their value. Thus, superior content delivery is a priority for many market participants.

U.S. Distance Learning Systems and Services Markets presents detailed market share analysis, growth opportunities, industry trends, and successful market strategies, including satellite- and terrestrial-based segments. Content and information are utilized by a wide range of interested parties, from market participants to investment banks.

Frost & Sullivan present 1999 Market Engineering Awards to companies that have positively contributed to the distance learning industry. The Leadership Award is presented to ONE TOUCH Systems. The Product Line Strategy Award goes to FVC.COM. The competitive Strategy Award is given to Centra Software.

Frost & Sullivan is an international marketing consulting and training company that monitors the telecommunications industry for market trends, market measurements and strategies. This ongoing research complements a series of research publications, such as #7160-72 U.S. PC/TV Convergence Product Markets, and supports participants with customized consulting needs. Free executive summaries are available to the press.

U.S. Distance Learning Systems and Services Markets

Report: 2103-64
Publication Date: January 2000
Price: $3,450
Contact: Jennifer Minx
Phone: 210.348.1015
Fax: 210.348.1003
E-mail: jminx@frost.com
Web: www.frost.com