Infonetics: Ethernet FTTH equipment sales up 21%, PON sales up 8% in 3Q07

DECEMBER 19, 2007 -- Worldwide PON equipment sales, including BPON, EPON, and GPON, sequentially grew 8% in the third quarter of 2007, reaching $422.8 million, reveals a new report from Infonetics Research (search for Infonetics), "PON and FTTH equipment and subscribers."

Sales of Ethernet FTTH equipment are up as well, surging 21% quarter over quarter, say analysts.

"Both PON and Ethernet FTTH continue to grow at a decent clip, with significant growth expected in the upcoming quarters as more incumbent operators begin their FTTH and FTTB rollouts, particularly those using GPON, in earnest," explains Jeff Heynen, directing analyst at Infonetics Research. "We expect to see heavy price competition among vendors to secure these larger deals and corresponding pressure on component suppliers to wring as much cost out of equipment to ensure some level of profitability for the manufacturers," he adds.

Other highlights include:
• In 3Q07, FTTH customer premises equipment (CPE) spending accounts for 59% of worldwide FTTH sales; FTTH non-CPE spending accounts for 41%.
• In 2007, 53% of all Ethernet FTTH subscribers will come from EMEA.
• The number of worldwide PON subscribers is forecast to grow to 33.6 million in 2010, 66% of which will be EPON subscribers and 73% of which will hail from Asia Pacific.
• Mitsubishi, with its ongoing shipments of EPON OLTs and ONTs to NTT, leads in overall worldwide PON market share for revenue and ports shipped in 3Q07.
• Alcatel-Lucent leads in the fast-growing GPON market, Mitsubishi leads in the EPON market, and Tellabs, with its ongoing shipments to Verizon, leads the BPON market share by a long shot, says Infonetics.

Infonetics' report tracks PON equipment revenue and ports, including BPON, EPON, GPON, OLTs, and ONTs with FTTH vs. FTTB splits; Ethernet FTTH equipment, including CPE and service provider equipment; and total FTTH equipment, including CPE and non-CPE. The report also tracks PON, POTS, Ethernet, and DSL ports; and PON, PON FTTH, and Ethernet FTTH subscribers.

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