Chinese Fiber Deployments and Verizon FiOS Drive Record PON Revenues

  • FTTH
  • GEPON
  • GPON
  • PON
REDWOOD CITY, CA – The PON market posted record revenues of almost $800 million in the fourth quarter of 2010, according to a new report by research firm Dell’Oro Group. The market's continued upward trajectory was driven largely by fiber deployments in China, the report says.

“We estimate that China accounted for more than half of total GPON revenues in the fourth quarter,” says Tam Dell’Oro, president of Dell’Oro Group. “Chinese operators initially utilized EPON when fiber deployments began a couple of years ago but have increasingly utilized GPON over the last several quarters. We now expect that GPON will become the leading PON technology in China within the next few years due to its higher bandwidth capabilities and functionality.”

The top three GPON vendors in the fourth quarter were Huawei, Alcatel-Lucent and Ericsson. While Chinese vendor Huawei remained the top PON supplier in its domestic market, even non-Chinese vendors Alcatel-Lucent and Ericsson derived substantial portions of their fourth-quarter GPON revenues from shipments to China. Alcatel-Lucent benefited from being a leading supplier for Verizon’s FiOS, which also accounted for 15 percent of total GPON revenues.

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