Sales of DSL equipment fall to $2.5 billion: Dell'Oro

According to Dell'Oro Group's recently published "4Q17 Broadband Access Quarterly Report" DSL equipment sales fell in 2017, decreasing to $2.5 billion as operators continue seeking alternative deployments. Dell'Oro predicted that G.fast revenue will grow as operators finish testing and trialing G.fast amendment 3 chipsets and systems, according to a report published from Dell'Oro earlier this yea

According to Dell'Oro Group's recently published "4Q17 Broadband Access Quarterly Report" DSL equipment sales fell in 2017, decreasing to $2.5 billion as operators continue seeking alternative deployments.

Dell'Oro predicted that G.fast revenue will grow as operators finish testing and trialing G.fast amendment 3 chipsets and systems, according to a report published from Dell'Oro earlier this year (see "Sales of WDM metro equipment exceed $7 billion: Dell'Oro").With the growth of G.fast, double-digit drop is occurring in the DSL market.

"The DSL market decelerated in the second half of 2017," said Alam Tamboli, Dell'Oro Group senior analyst. "G.fast amendment 3 chipsets have recently become available, and operators are furiously testing and trialing the products. We found some operators are hesitant to deploy VDSL and are delaying investments to wait for G.fast or PON. However, G.fast commercial availability is limited and not expected to ramp until 2019."

The market research firm reports that North America had a significant decline in DSL, resulting mainly from CenturyLink's acquisition of Level 3, and consequent spending cuts throughout the integration period (see "FCC approval clears path for CenturyLink acquisition of Level 3"). The acquisition and spending cuts materially impacted ADTRAN, and other vendors such as Calix to less of an extent, reports Dell'Oro.

Similarly, optical line terminals (OLTs)and optical networking terminals (ONTs) made weak revenue contributions, leading to a 12 % PONmarket decline. Dell'Oro expects the broadband access market to be flat in 2018, predicting a positive growth in PON offset by a decrease in the cable and DSL markets alike.

The Dell'Oro Group Broadband Access Quarterly Report provides coverage of the market and data on nearly 25 vendors, including Nokia, Arris, Cisco Systems, Huawei Technologies, and ZTE. The report includes tables covering manufacturers' revenue, average selling prices, and unit shipments for cable, DSL, and PON equipment such as Cable Modem Termination Systems (CMTS), DSL Access Multiplexers ([DSLAMs] by technology), and PON OLTs, by technology. Cable and DSL Customer Premises Equipment (CPE) technology and PON ONTs are also covered in the report.

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