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Cable Technology Feature Article

August 27, 2009

PON Exhibits Double-Digit Revenue Growth in Access Market, Says Dell'Oro Group

By Calvin Azuri, TMCnet Contributor

Dell’Oro Group’s latest quarterly Access report reveals that worldwide revenue for DSL, cable and PON Access equipment marked its first sequential increase in a year, in the second quarter of 2009 thanks to strong EPON shipments to China and Japan.
The combined Access revenue also increased 2 percent over the previous quarter. However, it was 19 percent lower over the same period last year.
Alhough PON has exhibited double-digit revenue growth both sequentially and over the year-ago period in the access market, DSL and Cable segments each experienced steep declines during the same time span, according to The Dell’ (News - Alert)Oro Group Quarterly Access Report, which provides complete in-depth coverage of the market.
The report features tables covering manufacturers’ revenue, average selling prices, and port/unit shipments for Cable, DSL and PON equipment. Network infrastructure equipment includes Cable Modem Termination Systems (CMTS), Digital Subscriber Line Access Multiplexers ([DSLAMs] by technology ADSL, G.SHDSL, and VDSL), and PON Optical Line Terminals ([OLTs] by technology BPON, EPON, and GPON). The report also covers Cable and DSL Customer Premises Equipment (CPE) technology and PON Optical Networking Terminals (ONTs).
According to Tam Dell’Oro, president of Dell’Oro Group, the two most important factors that impact demand for Access equipment are network upgrades and broadband subscriber additions, which have decreased since 2006. This in turn has a negative impact on equipment demand, especially for a slower-speed technology like ADSL. On the positive side, Dell’Oro notes that upgrade projects are being driven by competition, increasing Internet traffic, government incentives and the desire by operators to enable new revenue-generating services like TV over broadband. These upgrade projects increasingly drive demand for higher-speed PON, VDSL and Cable DOCSIS 3.0 equipment.
Dell’Oro Group publishes Access quarterly reports with in-depth market-level information on Cable, DSL and PON markets. The report tracks the access market by region, North American, EMEA, Asia-Pacific, and rest of world.

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Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin’s articles, please visit his columnist page.

Edited by Marisa Torrieri