14 Percent Increase for Broadband Equipment Market as GPON, VDSL Take Hold

  • IHS
CAMPBELL, CA — The global broadband aggregation equipment market, including DSL, PON and Ethernet FTTH, totaled $2.1 billion in the first quarter of 2015 (1Q15), a 5 percent sequential falloff, but a 14 percent gain year-over-year driven by GPON and VDSL deployments, according to the latest quarterly report, "PON, FTTH, and DSL Aggregation Equipment," from market analyst IHS.

"Broadband aggregation equipment spending went above $2 billion in each of the last three quarters, so there was bound to be some slowdown to start the year," said Jeff Heynen, research director for broadband access at IHS. "Though we look for spending to drop to around $7.8 billion for the full-year 2015, that total is well above historical years and shows operators' continued commitment to providing premium fixed broadband services around the world."

Broadband Market Highlights

  • In North America, incumbents, utilities and municipalities are feeling that FTTH and Gigabit services are giving them a chance to compete against cable companies, which are limited to asymmetric residential services. This focus on fiber is resulting in increased spending on GPON and Ethernet FTTH equipment

  • The competitive landscape has heated up in Latin America after years of consolidation and regulatory restrictions; Cable operators and telcos in the region are investing after years of underinvestment

  • Globally, PON equipment revenue was up 18 percent in 1Q15 from the year-ago first quarter


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