Worldwide PON Market Reaches $7.1B in 2010

  • FTTH
  • PON
CAMPBELL, CA -Carriers increased their spending on broadband aggregation equipment by a whopping 27 percent in 2010 to $7.1 billion, according to market research firm Infonetics Research in its fourth-quarter PON, FTTH and DSL Aggregation Equipment and Subscribers report. Infonetics attributes the growth to fiber-to-the-home investments by Chinese operators and to national stimulus efforts in the United States, Portugal and elsewhere.

"The biggest spending increase for the year was in passive optical network equipment, followed by DSL aggregation equipment, as service providers upgrade their networks to offer subscribers premium data services to support the phenomenal growth in online video consumption, social networking, and other Web services," says Jeff Heynen, directing analyst for broadband access at Infonetics Research.

Market Highlights
. The shift from copper to fiber continued in 4Q10; DSL aggregation equipment revenue dropped 1.6 percent from 3Q10 and PON equipment increased 6.5 percent.
. Operators in China continued to invest heavily in EPON and GPON fiber equipment.
. In the Middle East, Spain, Portugal and Russia, spending was focused on Ethernet FTTH for municipal open access network deployments and GPON deployments for large-scale, residential FTTH deployments by incumbent operators.
. The overall broadband equipment market--including PON, DSL aggregation, and Ethernet FTTH equipment--grew just 1.7 percent in 4Q10 over 3Q10, as spending in Asia Pacific and EMEA increased while spending in North America and Central and Latin America declined.
. For the year, every region increased annual broadband aggregation revenue, with CALA up 37.7 percent in 2010, APAC up 35 percent, North America up 20 percent and EMEA up 14 percent.
. Huawei's broadband aggregation equipment revenue jumped 21 percent in 4Q10 over 3Q10 and is up 58 percent for the year, broadening its lead in the global broadband equipment market.

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