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Cable Technology Feature Article

February 03, 2009

Report: Economic Downturn Affects Global Sales of Network Infrastructure Equipments

By Jayashree Adkoli, TMCnet Contributor

Dell’Oro Group, a provider of market information about the networking and telecommunications industry, predicted that global sales for access network infrastructure equipments, including cable, digital subscriber line (DSL) and passive optical network (PON) access concentrators, will decrease by nearly 15 percent this year. 
The Dell’ (News - Alert)Oro Group’s 5-Year Forecast report indicated that the sales decline is due to the reduced number of subscriber additions as well as a weak global economy. This will slow operators’ access network upgrade plans as well, and the company anticipates that recovery might begin in 2010 for cable, PON, and VDSL.
The report, which offers forecast through 2013, also predicts that there will be access concentrator shipment growth for cable, PON, and VDSL in 2010 and this might continue each year through 2013.
At the same time, the report forecasts that there will be a trend towards higher-speed networks, thereby affecting slower-speed ADSL infrastructure equipment. It is predicted that the growth in higher-speed networks will result in steep yearly declines in revenue for slower-speed ADSL infrastructure equipment.
“The weakening global economic situation has caused us to lower our forecast for most segments relative to our July 2008 forecast,” said Tam Dell’Oro, founder of Dell’Oro Group. “This is especially true for 2009, but there are also implications throughout our forecast horizon even though an economic recovery is expected by 2010. We believe that operators will not change their network upgrade strategies, although we expect them to be more cautious with expenditures which likely result in slower, success-based deployments.”
According to the Dell’Oro Group, its report offers a comprehensive overview of the broadband access industry. The report includes tables covering manufacturers’ revenue, average selling prices, and port/unit shipments for cable, DSL, and PON equipment. The network infrastructure equipment includes cable modem termination systems (CMTS), digital subscriber line access multiplexers (DSLAMs by technology ADSL, ADSL2+, G.SHDSL, VDSL), and PON optical line terminals (OLTs).
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is Fixed Service Strategies for Mobile Network Operators, brought to you by Comverse (News - Alert).

Jayashree Adkoli is a contributing editor for TMCnet. To read more of Jayashree's articles, please visit her columnist page.

Edited by Michelle Robart