GPON, FTTH Gain Ground

According to research from IHS (NYSE:HIS), the global broadband aggregation equipment market - including DSL, PON and Ethernet FTTH - totaled $2.1 billion in the first quarter of 2015 (1Q15), a 5% sequential falloff, but a 14% gain year-over-year driven by GPON and VDSL deployments.

• In North America, incumbents, utilities and municipalities are feeling that FTTH and Gigabit services are giving them a chance to compete against cable companies, which are limited to asymmetric residential services. The focus on fiber is resulting in increased spending on GPON and Ethernet FTTH equipment.
• The competitive landscape has heated up in Latin America after years of consolidation and regulatory restrictions; cable operators and telcos in the region are investing after years of underinvestment.
• Globally, PON equipment revenue was up 18% in 1Q15 from the year-ago first quarter.