Infonetics Research: Fixed Broadband Access Equipment Market Set to Peak in 2011

CAMPBELL, Calif. -- (BUSINESS WIRE) -- Market research firm Infonetics Research today released excerpts from its third quarter (3Q11) PON, FTTH, and DSL Aggregation Equipment and Subscribers market share and forecast report, which tracks fixed broadband access equipment and subscribers.

ANALYST NOTE

“We expect that 2011 is going to be the peak for the fixed broadband aggregation equipment market. The PON spending boom in China, coupled with DSL growth in Central and Latin America and VDSL and GPON growth in the EMEA region created a perfect storm of spending this year, but with peaks come valleys: by 2015, the broadband aggregation market will decline to $5.0 billion, from what we expect to be its high of $7.9 billion this year. Spending in China and North America will slow after this year, and the focus of operators will shift from DSL to fiber. DSL as an access technology will never disappear, but overbuilding with fiber (as Verizon and others have done) with the ultimate goal of removing copper will continue to grow among the world’s largest operators,” expects Jeff Heynen, directing analyst for broadband access and video at Infonetics Research.

PON, FTTH, AND DSL AGGREGATION MARKET HIGHLIGHTS

• Global spending on broadband aggregation (DSL, PON and FTTH) equipment declined 3% sequentially in 3Q11 to $2.0 billion, led by a double-digit drop in Europe, the Middle East, and Africa (EMEA)
• Asia Pacific is the only region to post an increase in broadband aggregation equipment spending, up 3% sequentially
• Year-over-year, from 3Q10 to 3Q11, global fixed broadband aggregation revenue is up a healthy 15%
• Huawei and ZTE continue their lead in overall broadband aggregation equipment revenue, though Huawei’s revenue dropped while ZTE’s increased, significantly narrowing the gap between the two
• Alcatel-Lucent maintains its solid 3^rd place lead in the market in 3Q11, while ADTRAN -- thanks to its strong quarter shipping DSL in North America, moved into 4^th position
• After a 14% increase last quarter, global spending on DSL equipment declined 9% in 3Q11, reflecting a slowdown in some major projects plus traditional third quarter softness
• EPON optical line terminal (OLT) revenue in Japan grew 16% sequentially in 3Q11, as NTT and KDDI increased their FTTH infrastructure spending to convert FTTB+VDSL subscribers to FTTH and deliver IPTV and broadband video services

REPORT SYNOPSIS

Infonetics’ quarterly PON, FTTH, and DSL Aggregation report provides worldwide and regional market size, market share, analysis, and forecasts through 2015. Revenue and ports are tracked for the following equipment: DSL aggregation (MSAPs, next gen DLCs, ATM and IP DSLAMs), BPON, 1.25G/2.5G EPON, 2.5G GPON, 10G EPON, 10G GPON, and Ethernet FTTH (CPE and service provider equipment). The report also tracks DSL subscribers by type (ADSL/ADSL2+, VDSL/VDSL2, G.SHDSL). Companies tracked: ADTRAN, Alcatel-Lucent, Allied Telesis, Calix, Ciena, Corecess, Dasan, ECI, Enablence, Ericsson, Fujitsu, Huawei, Iskratel, Millinet, Motorola, NEC, Nokia Siemens, Samsung, Sumitomo, Tellabs, UTStarcom, Zhone, ZTE, ZyXEL, and others.

CLIENT CONFERENCE CALL

Clients: View analyst Jeff Heynen’s 3Q11 highlights on the PON, FTTH, and DSL Aggregation markets by logging in and clicking on this report’s Conference Call tab: www.infonetics.com//cgp/login.asp?id=424.

RELATED BROADBAND RESEARCH

• Cable broadband equipment market up 14% from year-ago quarter; Cisco gains
• Telecom capex up 6% to $311B in 2011, revenue up 8% to $1.86T, driven by mobile broadband
• Operators looking at next gen FTTH technologies will wait for prices to drop
• GPON equipment investment in Europe, India and Middle East far outpaces subscribers
• Home networking device sales up in a normally-down first quarter
• High speed network port market to hit $52 billion in 2015 (1G, 10G, 40G, 100G)
• Residential gateway survey shows strong support for IPTV; Comtrend, Cisco top vendor list

UPCOMING BROADBAND MARKET FORECASTS AND SURVEYS

Download report highlights, prospectuses, tables of contents, etc. from the BROADBAND ACCESS tab on the Infonetics service portal (http://www.infonetics.com/login).

• Fundamental Telecom/Datacom Market Drivers Report (Dec. 13)
• Total Broadband Equipment, CPE, and Subscribers Pivot (Dec. 15)
• Total Broadband CPE, Home Networking, and Subscribers Pivot (Dec. 16)
• Home Automation Service Strategies: Global Service Provider Survey (December 2011)
• Next Gen PON, FTTH, & VDSL Deployment Strategies: Global Service Provider Survey (2012)
• Residential Gateway Deployment Strategies: Global Service Provider Survey (2012)

SALES

• Larry Howard, VP, Western NA, Asia, CALA: larry@infonetics.com, +1-408-583-3335
• Scott Coyne, Eastern NA, Texas, Midwest: scott@infonetics.com, +1-408-583-3395
• George Stojsavljevic, EMEA: george@infonetics.com, +44-755-488-1623
• Japan, Taiwan, Korea: http://www.infonetics.com/contact.asp

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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