Broadband Aggregation Equipment Passes $2 billion in 2Q14

  • Infonetics Research
CAMPBELL, CA — Operators around the world are binging on broadband, according to market research firm Infonetics Research in its 2Q14 PON, FTTH, and DSL Aggregation Equipment and Subscribers report. Driven by GPON and vectoring, the broadband aggregation market passed the $2 billion mark in the second quarter of 2014, growing by double digits both sequentially and from the year-ago quarter.

"'Gigabit' has become the mantra of the North American market," says Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research, "resulting in an acceleration of FTTH network investments. Meanwhile in Europe, vectoring VDSL2 deployments continue to ramp quickly."

Broadband Market Highlights

  • In 2Q14, worldwide broadband aggregation equipment revenue (DSL,PON, and Ethernet FTTH) reached $2.1 billion, growing 17 percent quarter-over-quarter and 19 percent year-over-year

  • Global spending on all broadband product segments rose in 2Q14 from 1Q14: Ethernet FTTH soared 45 percent, DSL aggregation climbed 21 percent, and PON increased 15 percent

  • GPON equipment sales are up 19 percent sequentially in 2Q14, and up 44 percent from the same period a year ago, sparked by China

  • VDSL ports grew to 6.6 million in 2Q14, as vectoring endeavors in EMEA continued to expand and grow in significance

  • North America rebounded from a typically slow Q1, and broadband spending is expected to increase later this year when Connect America Fund (CAF) projects get underway

  • Huawei saw a jump in broadband aggregation gear revenue in 2Q14 in Asia Pacific, driven largely by projects in Southeast Asia


 

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