JCOM Addressable Market Size
IDC - Market size for Outsourced Fax Services 2001 2002 2003  
    $380.0 $700.0 $1,100.0  
2001-2005 CAGR
Fax Machines  5%
2001 2002 2003 2004 2005 2006 2007 2008 2009
Installed base (ww) (millions)                        112 118 125 131 138 135.2 132.5 129.9 127.3 Source: Davidson Consulting, 2003
  Growth 5.36% 5.93% 4.80% 5.34% -2.00% -2.00% -2.00% -2.00%
People served by each fax machine 12 12 12 12 12 12 12 Source: Davidson Consulting, 2003
Total Market of people served by fax (millions)           1,500                     1,572                     1,656                     1,623                     1,590                     1,559                     1,527
Replacement rate - existing machines 1.00%
Annual sales - new/replacement fax machines (M) 7.5 8.18 7.25 8.31 1.38 1.35 1.33 1.30 Source: Davidson Consulting, 2003 (for Brooktree)
Cost per new machine  $     300.00  $     250.00  $               225.00  $               200.00  $               200.00  $               200.00  $               200.00  $               200.00
$$$ Spent on New Fax machines (M)  $  2,250.00  $  2,045.00  $             1,631.25  $             1,662.00  $               276.00  $               270.48  $               265.07  $               259.77
Fax Machine Supplies
   - $$ per machine per yr (toner, etc.) $40  $       4,720  $       5,000  $                 5,240  $                 5,520  $                 5,410  $                 5,301  $                 5,195  $                 5,091 Source: WAGNER
Transmission Cost Calculation 
Minutes of faxing annually- ww (1999)     395,000,000,000 Source: Davidson Consulting, 2003 (for Brooktree)
Adjust to US 50%
    197,500,000,000
Adjust to email cannibalization from 1999 level -50% -55% -60% -65% -68% -70%
2004 Minutes       98,750,000,000     108,625,000,000     118,500,000,000     128,375,000,000     133,312,500,000     138,250,000,000
Minutes per fax 3 3 3 3 3 3
Number Faxes 2004       32,916,666,667       36,208,333,333       39,500,000,000       42,791,666,667       44,437,500,000       46,083,333,333
Fax machines 2004           131,000,000           138,000,000           135,240,000           132,535,200           129,884,496           127,286,806 Source: WAGNER
Faxes per machine 251.3 262.4 292.1 322.9 342.1 362.0
Cost of transmission time (cents/min)  $                   0.03 0.02 0.02 0.02 0.02 0.02 Assumes a blend of LD, Inter'l and Local
Transmission cost (2004)   $                 2,963  $                 2,173  $                 2,370  $                 2,568  $                 2,666  $                 2,765
          2004 2005 2006 2007 2008 2009
TOTAL MARKET FAX ($$ millions)                             9,834                     9,355                     8,056                     8,139                     8,127                     8,116
Total Small Businesses US
  - employer owned (M)  5.8 5.9 6.0 6.1 6.2 6.3 6.4 6.5 6.6 Source: SBA 2003 report
   - fax numbers/accts per employer owned 3 Assume $$$ capped at line replacement cost ($45)
    - Potential accts  17.5 17.7 18.0 18.3 18.5 18.8 19.1 19.4 19.7
  - self-employeed (M) 9.8 10.0 10.1 10.3 10.4 10.6 10.7 10.9 11.1 Source: SBA 2003 report
Growth rate 1.5%
Fax line penetration 90% Source: Davidson Consulting, 2003 (for Brooktree)
Adressable small business market
  - employer owned (M)  15.7 15.9 16.2 16.4 16.7 16.9 17.2 17.4 17.7
  - self-employeed (M) 8.8 9.0 9.1 9.3 9.4 9.5 9.7 9.8 10.0
Total 24.6 24.9 25.3 25.7 26.1 26.5 26.9 27.3 27.7
Local Coverage by JCOM 1300 cities 95%
23.3 23.7 24.0 24.4 24.8 25.1 25.5 25.9 26.3
Revenue per month per account $15.50 Source:  JCOM financial report
Total small business market size   $4,339.9 $4,405.0 $4,471.1 $4,538.2 $4,606.2 $4,675.3 $4,745.5 $4,816.6 $4,888.9
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