Asia and the U.S. will drive PON over the next five years, says Dell'Oro

JULY 31, 2007 -- Dell'Oro Group forecasts worldwide PON equipment revenues will reach almost $2 billion by 2011, a 70% increase from last year.

JULY 31, 2007 -- Dell'Oro Group (search for Dell'Oro Group) forecasts worldwide PON equipment revenues will reach almost $2 billion by 2011, a 70% increase from last year. According to its new report, the PON subscriber base is expected to increase five-fold over the next five years, driven by increasing migration of subscribers from slower speed broadband service, such as ADSL, to this high-speed service.

"Over the next five years, we expect the PON market will continue to be concentrated in Asia and North America, but also believe we'll start seeing significant deployments in parts of Europe," said Tam Dell'Oro, founder of Dell'Oro Group. "The market drivers differ between geographic regions. For example, deployments in Japan and Korea benefit from favorable government policy, while shipments in the U.S. are driven by traditional telecom operators, such as Verizon, offering TV services that are competitive with those offered by cable operators. In Europe, we believe PON deployments will be most significant in countries, such as France, where competition is strong from alternative operators."

The Dell'Oro Group 5-Year Forecast Report provides an overview of the broadband access industry, with tables covering manufacturers' revenue, average selling prices, and port/unit shipments for cable, DSL, and PON equipment.

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