The global market for DSL equipment is predicted to be worth $10.4 billion by 2007, according to analysts from Frost & Sullivan.

Last year the sector was worth $4.8 billion.

With more than 700 million phone lines in the world the potential for growth in this sector is substantial especially with more and more countries making the roll-out of broadband a priority.

Demand will also be fuelled as increasing numbers of people sign up to the broadband revolution attracted by home networking, voice over DSL and multimedia-rich content such as video-on-demand.

However, the report World xDSL Equipment Markets warns that DSL will have to face competition from other broadband technologies such as cable modems.

Said Frost & Sullivan analyst, Jean-Christophe Deverines: "Despite the industry's potential, increased threats from competing technologies, rising pressure from suppliers and customers, elevated inventory levels and fears of overproduction constitute challenges."

Which is nice. ®