Fiber access market to reach $1.9B in 2009, says IDC

September 29, 2005 Framingham, MA -- According to new research from IDC, the worldwide fiber access equipment market will reach $1.9 billion in 2009, as users migrate to higher speed data services and innovative new services such as IPTV, HDTV, and video-on-demand (VOD).

According to the firm, the emergence of "triple play" - the integration of voice, video and data services on a single broadband connection - is driving service provider demand for more access network bandwidth. The firm says that IPTV, HDTV, and VOD services, in particular, are driving providers around the world to upgrade their access networks with the capacity of fiber and the equipment that goes with it.

"Fiber access networks are the 'last mile' technology that bring the capacity of optical fiber directly to consumers and businesses," says Sterling Perrin, manager of IDC's Optical Networks research. "Following the stagnation of optical core networking over the past few years, the fiber access market is showing real promise, and, ultimately, can drive a reinvestment in the core."

In terms of technology, the firm says that choices for fiber access will be drawn clearly along regional lines. According to the firm, U.S. carriers will remain committed to broadband passive optical networking (BPON) technology; Japan will focus on Ethernet passive optical networking (EPON) technology; Europe and Asia (excluding Japan) will favor point-to-point Ethernet, but there will be a small mix of EPON and BPON within both of these regions. Equipment vendors hoping to maximize on fiber access market growth will play in multiple technologies, and regions, if possible, says the firm.

Other key findings from the study include:

* The worldwide fiber access networking market will grow at a 16.6% CAGR between 2004 and 2009.

* EPON technology has quickly become the technology of choice in Japan.

* Video is a key driver for the move to fiber access in the U.S. and Europe and to a lesser extent in Asia.

* Worldwide market growth opportunity is high, especially when compared to other optical technology areas and to the DSL broadband equipment market that fiber access is replacing.

The study, "Worldwide Fiber Access Equipment 2005-2009 Forecast and Analysis," forecasts the five-year revenue opportunity for fiber access equipment from 2005 to 2009. The firm breaks down fiber access equipment revenue by geographic region, including North America, Europe, Asia/Pacific, and the rest of the world (ROW). The study also breaks down the worldwide market by the major equipment segments, including ATM passive optical network (PON) (BPON), Ethernet PON (EPON), and point-to-point Ethernet equipment.