2014: GPON Spurs a Record Year for Broadband Equipment Market

  • IHS
  • Infonetics Research
CAMPBELL, CA — Worldwide spending on broadband aggregation equipment rose 9 percent in 2014, to $8.2 billion, driven by robust sales of GPON equipment, particularly in China, according to technology market research firm Infonetics Research, now part of IHS Inc.

Infonetics' early edition "PON, FTTH, and DSL Aggregation Equipment" report contains vendor market share and preliminary analysis for the broadband aggregation equipment market for the fourth quarter of 2014 (4Q14) and the full-year 2014.

"The strength in the broadband aggregation market is due to another record year for GPON equipment, as operators around the world seek a flexible, interoperable technology for offering higher-bandwidth speeds to their customers. China leads in GPON spending, accounting for half of all GPON sales in 2014, while Latin America notched the largest increase in GPON spending, up 258 percent. Fierce competition in Brazil combined with key FTTH projects in Mexico and Colombia helped expand GPON's reach," said Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.

Broadband Market Highlights

  • The global broadband aggregation equipment market, including digital subscriber line (DSL), Passive Optical Network (PON) and Ethernet FTTH, closed out 2014 on a strong note, with 4Q14 revenue growing 7 percent sequentially, to $2.2 billion.

  • Where one technology gained (GPON), another lost: DSL spending was down 15 percent in 2014 from 2013 as continued price erosion for asymmetric DSL (ADSL) and very-high-bit-rate DSL (VDSL) tamped revenue.

  • Despite the fanfare surrounding vectoring, VDSL port shipments were up only 3 percent in 2014, pointing to longer deployment timelines than traditional, CO based ADSL, and heavy competition pushing providers closer to G.fast or FTTH.

  • The top five fixed broadband equipment revenue market share leaders for full-year 2014 are, in alphabetical order, Adtran, Alcatel-Lucent, Calix, Huawei and ZTE.


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