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The Impact of TR-059 on the DSL and Broadband Markets

Report Summary

The major U.S. telcos have pushed through another precedent-setting set of technical requirements that are a major milestone in the development of broadband edge applications -- the DSL Forum's TR-059, which overlays an IP-centric architecture on top of the existing ATM DSLAM-based DSL environment and opens their local loop to a next generation of services and revenues. In the few few years, the revenues from these new services are expected to top $972m worldwide in incremental annual sales. Equipment vendors supporting TR-059 should expect to see an incremental $810m minimum in sales to drive this initial launch of services.

Significant about this new technical specification:

  • It was originally authored by the same three U.S. Telcos that recently have begun the world's largest RFP for Fiber-to-the-Premises (FTTP).
  • It is applicable to all the local access broadband technologies, not just DSL -- especially fiber for FTTP/FTTH/FTTB access nets.
  • It embodies IP policy and management in a new class of functionality called the Broadband Remote Access Server (BRAS).
  • It is the first major area where competitors can make serious inroads against the Alcatel monopoly in the U.S. local loop environment; indeed, Alcatel's existing ability to implement TR-059 is extremely limited, and companies like Copper Mountain and Juniper Networks are well positioned for the assured equipment sales resulting from TR-059.
  • TR-059 is required for the telcos to compete against cable and other broadband alternatives, was designed by the telcos for their specific environments, and will result in equipment orders in the near term.

The report outlines the relevant market and architectural backdrop to the WT-080 and WT-081 submissions that ultimately lead to TR-058 (the market requirements) and TR-059 (the architectural requirements) in the DSL Forum. Emphasis is given to the services drivers to the specifications, and the before and after market and architectural impacts of TR-058 and TR-059. A detailed matrix and analysis is given on the abilities of AFC, Alcatel, Cisco, Copper Mountain, Juniper Networks, Laurel Networks,, Nortel Networks, and Redback Networks, to be able to deliver immediately on the TR-059 requirements.

The report was prepared in conjunction with East by North, a telecommunications consultancy and training organization headquartered in Nova Scotia. More info on East by North can be found at

Date: September 14, 2003
Length: 83 pages

Price: US$750

Table of Contents

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