Infonetics: Record Quarter for PON Equipment

CAMPBELL, CA - Global revenue for passive optical network (PON) equipment shot up 27 percent in the fourth quarter of 2011, according to new market research from analyst firm Infonetics Research. PON equipment represents the bulk of the electronics used in fiber-to-the-home networks. Driving the sales were healthy increases in EPON and GPON shipments in China, Japan, South Korea, Malaysia and Singapore. China alone set a record with the first billion-dollar PON quarter in the country.

Spending on both PON and DSL equipment in Latin America exploded in the fourth quarter, helping the region finish off 2011 with phenomenal yearly growth in both segments. Operators in Mexico, Brazil, Argentina, Chile, and Uruguay are all in competition with cable operators to expand their serving areas and the speeds they offer, according to Jeff Heynen, directing analyst for broadband access and video at Infonetics Research.

Key findings of the Infonetics report include:

- The overall broadband aggregation equipment market (DSL, PON and active Ethernet FTTH) had its biggest quarter ever in 4Q11, with revenue up 15 percent sequentially to $2.3 billion, driven by heavy spending in Asia and Latin America.

- The market also had its biggest year on record, up 24 percent to $8.4 billion in 2011, as Infonetics forecast in previous reports.

- In the fourth quarter, Huawei had its biggest broadband aggregation revenue quarter on record, and Alcatel-Lucent passed ZTE to take back the #2 spot for the first time in a year.

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