European liberalization gives major boost to VANS market

market forecast 90% of the overall market. That overall market within Europe will rise to $7,319 M in four years time, from its level in 1988 of $3,889 M. The UK forms the largest single market - and will continue to be so for the forseeable future - largely as a result of the government's sweeping liberalization measures (1988 - $91.9 M: 1994 - $212.5 M). Such growth is predicted to be mirrored in France, Eurpoe's second largest VANS market. Here, the French government's large programme of development funding is providing a VANS boost, despite their relative lack of telecomms liberalization (1988 $66.6 M: 1994 - $1 72.5 M). In addition, two of Europe's smaller VANS markets - Italy and Scandinavia - look set to experience strong growth in the next few years (respectively, $70.3 M and $46.8 M by 1994). (Frost & Sullivan Ltd, Sullivan House, 4 Grosvener Gardens, London SW1W ODH, UK. Tel: 44 (0) 71 730 3438. Frost &Sullivan Inc, 106 Fulton Street, New York, NY 10038, USA. Tel: (212)233 1080)

European liberalization gives major boost to VANS market Frost & Sullivan, UK(1990)$5,500, No. E1210 The Value Added Network Services (VANS) market should prepare for explosive growth in the coming years, caused largely as a result of the liberalization of Europe's telecommunications authorities. This trend towards liberalization not only affects the range of VANS that can be offered by suppliers, but also the types of suppliers who can operate them. The result, say international market researchers Frost & Sullivan, is a VANS market which is not only large and getting larger, but one which is increasing in complexity while at the same time becoming more and more competitive. Liberalization in the telecomms authorities also seems to be sweping across a few commercial organizations. A number of these are gathering together to promote the use of VANS in their own industries. Cooperation is also growing among suppliers and users, both of whom are increasingly cooperating on the specification of VANS before they are launched. The European Market for Value Added Network Service (E1210) also gives a salutory warning to those suppliers who remain insular in their attitudes. The time will, come, they are told, when they will be forced to forge links with complementary suppliers on an international basis in order to be able to offer their services to a wider user base - i.e. co-operate or die! Suppliers 'face an increasingly open but also unpredictable' environment serving increasingly enthusiastic users in a confused and confusing market. On the different application categories there will be significant changes over the next four years in all but the largest category (text and data VANS will continue to vol 14 no I january/februaw 1991

dominate in 1994, retaining around 90% of the total market). Mobile VANS, currently the second largest applications sector with $86 M in 1988, will continue to grow towards 1994 reaching $285 M, as both pan-European initiatives and developments in technological capabilities boost the importance of this sector. Despite such a strong growth, though, the market for video and image VANS will surge into second place, moving from a market of $56 M in 1988 to $334 M by 1994. Voice VANS are predicted by the report to reach a market share of $232 M by 1994, a jump from $77 M in 1988. There will be little change in the balance between the business and residential markets, with business set to continue to dominate with

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Rest of Europe$486.7M

Scandanavia$160.7M

Italy $230.4M

U.K. $918.5M

France $665.5M

West Germany$427.8MI I

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The market for VANS by country group in 1989 (Source:Prosta SullivanLtd) 61