Infonetics: PON Sales Jump as Broadband Market Shifts to Fiber

  • Active Ethernet
  • FTTH
  • GEPON
  • GPON
  • PON
CAMPBELL, CA - The first quarter of 2011 saw a shift in the broadband aggregation equipment market from DSL to PON, according to market research firm Infonetics Research. A dramatic drop in DSL ports in China is evidence of operators there continuing their shift from DSL.

MARKET HIGHLIGHTS
. The worldwide PON market jumped 20 percent in 1Q11 to surpass $1.0 billion for the first time ever.
. Driven by Chinese deployments and sustained growth in Japan and Korea, worldwide EPON spending rose a whopping 46 percent in 1Q11 over 4Q10.
. The North American GPON market is expected to regain its momentum over the next few quarters as Verizon reinitiates its FiOS buildout and broadband stimulus deployments continue.
. Calix's Ethernet FTTH equipment revenue shot up 222 percent this quarter as the company capitalized on broadband stimulus grants.
. Huawei and ZTE benefited the most from the Chinese operators' spending spree on EPON and GPON equipment this quarter, despite being hammered by the decline in spending on DSL equipment.
. The overall market for DSL, PON, and Ethernet FTTH equipment reversed its small fourth-quarter gain with a 2 percent decline in 1Q11, dipping to $1.96 billion worldwide. Leading the decline was a double-digit sequential drop in DSL infrastructure spending in all regions.
. Despite the quarterly decline, the DSL equipment market is up 36 percent year-over-year (1Q11 vs. 1Q10).

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