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Increasing demand for connectivity to corporate resources and the Internet in India has brought cheer to producers of networking products, especially modem makers.

In fiscal 1996-97, the total market for modems stood at 84,264 units valued at Rs 1.33 billion.

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Modems were the highest contributors to the sales of networking products through the dealer channel in the first half of 1997-98.

Among networking products, modems move almost entirely through the dealer channel. IDC believes that more than 90 per cent of modem sales by units are made through dealers.

It is estimated that 66,634 modems valued at Rs 530.24 million moved through the dealer channel during the first half of 1997- 98. This, industry sources say, is an indication of bright prospects for the modem market.

The modem market is growing exponentially. This year, according to LanBit (India), an associate company of Allion, Taiwan, some 300,000 modems will be sold.

This is almost half of the stand-alone personal computer sales. This means that every second PC sold will now be equipped with a modem.

With users recognising networking as a critical success factor to improve efficiency, the networking market in the country is showing signs of a boom.

It is estimated that the market for networking products in 1996-97 grew above the industry average. The use of networking among medium sized companies is on the rise and it has become critical for vendors to expand their reach by strengthening distribution channels.

IDC (India) estimates that networking products worth Rs 1.01 billion moved through dealers in the first half of 1997-98. Low-end networking products such as modems and 'network interface cards' were the largest chunk of the pie.

Modems and NIC brands dominated the list of top networking product brands in terms of sales through dealers in the first half of 1997-98.

At least four of the top 10 brands during the period were primarily modem brands.

This is only expected as modems and NICs contributed the maximum to the total sales of networking products through dealers in the same period, according to a LanBit report.

LanBit, Motorola and 3Com, the leading brands dominating the networking market, accounted for about 40 per cent of the sales value through dealers in the first half of 1997-98.

LanBit, which has a 32 per cent share in the Indian modem market, recently launched an international range of modems.

- Compiled from the Indian media

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