PON Shipments Are Driving the Broadband Access Market

  • FTTH
  • PON

REDWOOD CITY, Calif. - Strong EPON shipments to China and Japan propelled 2Q09 revenue for access equipment, according to market research firm Dell’Oro Group. The industry as a whole - including DSL, cable and PON - recorded its first sequential increase in a year, with combined revenue increasing 2 percent over the previous quarter, though the total was still 19 percent lower than the year-ago period. PON continues to be the bright spot in the market, as exhibited by its double-digit revenue growth both sequentially and over the year-ago period. DSL and cable each experienced steep declines over the year-ago period.

“Two important factors impacting demand for access equipment are broadband subscriber additions and network upgrades,” says Tam Dell’Oro, president of Dell’Oro Group. “Total broadband subscriber additions have been lower since the peak year of 2006, and are having a negative impact on equipment demand, especially for a slower-speed technology such as ADSL. On the positive side are the upgrade projects that are being driven by competition, increasing Internet traffic, government incentives and the desire by operators to enable new revenue-generating services such as TV over broadband. These upgrade projects increasingly drive demand for higher-speed PON, VDSL, and Cable DOCSIS 3.0 equipment,” Dell’Oro adds.


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