DSL Equipment Sales Tumbled in 2017 as Operators Look to Alternatives

REDWOOD CITY, CA — DSL equipment sales tumbled in 2017, falling to $2.5 B as operators look to alternative deployments, according to new research from Dell’Oro Group, a market research firm that specializes in strategic competitive analysis in the telecommunications, networks and data center IT markets. The DSL market experienced double-digit decline as Gfast looms over the horizon.

“The DSL market decelerated in the second half of 2017,” said Alam Tamboli, senior analyst at Dell’Oro Group. “Gfast Amendment 3 chipsets have recently become available, and operators are furiously testing and trialing the products. We found some operators are hesitant to deploy VDSL and are delaying investments to wait for Gfast or PON. However, Gfast commercial availability is limited and not expected to ramp until 2019,” Tamboli explained.

Additional highlights from the 4Q17 Broadband Access Quarterly Report:

  • North America had a sharp DSL decline, but this was primarily due to CenturyLink’s acquisition of Level 3 and subsequent spending cuts during the integration period, which materially affected certain vendors like ADTRAN and Calix (to a lesser degree).

  • The PON market dropped 12 percent, with similarly poor contributions from OLT and ONT revenue.

  • As we look at 2018, we forecast the Broadband Access market to be flat, with positive growth in PON offset by declines in both the Cable and DSL markets.

Broadband Access Quarterly Report
The Dell’Oro Group Broadband Access Quarterly Report provides complete, in-depth coverage of the market and data on approx. 25 vendors, including Nokia, Arris, Cisco Systems, Huawei Technologies and ZTE. Included are tables covering manufacturers’ revenue, average selling prices, and port/unit shipments for Cable, DSL, and PON equipment – cable modem termination systems (CMTS), digital subscriber line access multiplexers ([DSLAMs] by technology), and PON optical line terminals ([OLTs] by technology). The report also covers aable and DSL customer premises equipment (CPE) technology and PON optical networking terminals (ONTs).


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