North America Up, Other Regions Down in Broadband Spending

  • Infonetics Research
CAMPBELL, CALIFORNIA - Despite bright spots in North America, the global broadband aggregation equipment market has declined sharply this year, according to Infonetics Research in its latest "PON, FTTH, and DSL Aggregation Equipment and Subscribers" report.

"The broadband aggregation equipment market is off to a difficult start this year, with overall revenue down both sequentially and from the year-ago first quarter, though there is significant disparity in results between regions and technologies," observes Jeff Heynen, who was promoted this week to principal analyst, broadband access and pay TV at Infonetics Research.

"The EMEA region (Europe, the Middle East and Africa) was hit hardest, with spending on DSL, PON, and FTTH equipment down 27 percent from the previous quarter, putting an end to three consecutive quarters of growth," Heynen continues. "In China, we saw a big drop in EPON spending but an eigth consecutive quarter of growth for GPON as China Telecom and China Unicom continue their GPON-based FTTH deployments to provide 20M access to subscribers. Meanwhile, North America bucked the trend and avoided its typical first-quarter softness as operators increased spending to fight the aggressive DOCSIS 3.0 initiatives by cable operators."

1Q13 Broadband Aggregation Market Highlights

  • Spending on DSL, PON, and FTTH equipment decreased 7 percent in 1Q13 from4Q12, to $1.5 billion worldwide

  • PON equipment revenue in EMEA dropped 50 percent in 1Q13, following  two quarters of double-digit increases, due to seasonality and the conclusion of initial GPON purchases by Russian and Middle Eastern operators

  • Despite a 5 percent decline in worldwide GPON revenue and a 4 percent decrease in EPON equipment revenue, Huawei maintained its worldwide revenue lead in the overall broadband aggregation equipment market, with 33 percent market share

  • Alcatel-Lucent maintained second place in the overall broadband aggregation market, followed by ZTE, which is having a tough few quarters as it gouges prices to win a piece of China Telecom's FTTX business


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