DSL drop off means flat 3Q14 broadband systems market says Infonetics

A drop in sales of DSL equipment negated continued growth in PON equipment demand in the third quarter of 2014, says market research firm Infonetics Research in its 3Q14 "PON, FTTH, and DSL Aggregation Equipment and Subscribers" report. The $2 billion in sales for the quarter represented a 1% sequential fall off, according to the report.

A drop in sales of DSL equipment negated continued growth in PON systems demand in the third quarter of 2014, says market research firm Infonetics Research in its 3Q14 "PON, FTTH, and DSL Aggregation Equipment and Subscribers" report. The $2 billion in sales for the quarter represented a 1% sequential fall off, according to the report.

"DSL aggregation equipment revenue was down 6% quarter-over-quarter in 3Q14," explains Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research. "The third quarter is an inconsistent one, with some regions ramping spending while others brake expenditures ahead of fourth quarter budget flushes. And last quarter's 19% sequential jump in revenue probably sealed Q3's fate. The good news is that fourth quarter spending should increase solidly."

Underscoring Heynen's assertion about third quarter inconsistency, Infonetics reports that spending on broadband aggregation gear increased in Asia Pacific and North America, but declined in Europe, the Middle East, and Africa (EMEA) and the Caribbean and Latin America (CALA) regions.

In North America, an expected ramp in Connect America Funding at least partially offsets AT&T's assertion that it will halt its 1-Gbps U-verse with GigaPower roll outs due to uncertainty over Net Neutrality regulation (see "FCC wants AT&T GigaPower FTTH details") to bolster optimism for broadband access network equipment sales.

PON equipment, meanwhile, continues to be this year's star. "PON (passive optical network) was the only broadband aggregation equipment category to grow in the third quarter of 2014, and it was up just 1% sequentially, led by 2.5G GPON ONT increases in North America," Heynen says. "From the year-ago third quarter, PON is up a nice 20% globally."

Infonetics' quarterly broadband aggregation report provides worldwide and regional market size, vendor market share, forecasts through 2018, analysis, and trends for EPON, GPON, FTTH, FTTB, PON, and DSL aggregation equipment and subscribers.

For more information on FTTx equipment and suppliers, visit the Lightwave Buyer's Guide.

More in Market Research