Dell'Oro Group: Access equipment revenue to decline in '09

FEBRUARY 3, 2009 -- The combined worldwide sales for access network infrastructure equipment including cable, DSL, and PON access concentrators will decrease almost 15% this year, due to declining subscriber additions and a weak global economy that will slow operators' access network upgrade plans.

FEBRUARY 3, 2009 -- The combined worldwide sales for access network infrastructure equipment including cable, DSL, and PON access concentrators will decrease almost 15% in 2009 to $4.0 billion, reveals new research from Dell'Oro Group (search for Dell'Oro). The report indicates that this decrease is primarily due to declining subscriber additions and a weak global economy that will slow operators' access network upgrade plans.

The report forecasts access concentrator shipment growth for cable, PON, and VDSL in 2010 and to continue each year through 2013, the duration of the forecast period. Meanwhile, the trend toward higher speed networks is expected to result in sharp yearly declines in revenue for slower-speed ADSL infrastructure equipment.

"The weakening global economic situation has caused us to lower our forecast for most segments relative to our July 2008 forecast," explains Tam Dell'Oro, founder of Dell'Oro Group. "This is especially true for 2009, but there are also implications throughout our forecast horizon even though an economic recovery is expected by 2010. We believe that operators will not change their network upgrade strategies, although we expect them to be more cautious with expenditures, which likely result in slower, success-based deployments," he adds.

Visit Dell'Oro Group

More in Market Research