PON drives higher sequential revenue in access market

AUGUST 26, 2009 -- Dell'Oro Group has announced that worldwide revenue for DSL, cable, and PON access equipment recorded the first sequential increase in a year, propelled by strong EPON shipments to China and Japan in 2Q09.

AUGUST 26, 2008 -- Dell'Oro Group (search Lightwave for Dell'Oro Group), a market research firm covering the networking and telecommunications industries, has announced that worldwide revenue for DSL, cable, and PON access equipment recorded the first sequential increase in a year, propelled by strong EPON shipments to China and Japan in 2Q09. Combined access revenue increased 2% over the previous quarter but was 19% lower over the year-ago period. PON continues to be the bright spot in the market, says the firm, as exhibited by its double-digit revenue growth both sequentially and over the year-ago period. On the other hand, DSL and cable each experienced steep declines over the year-ago period.

"Two important factors impacting demand for access equipment are broadband subscriber additions and network upgrades," says Tam Dell'Oro, president of Dell'Oro Group. "Total broadband subscriber additions have been lower since the peak year of 2006 and are having a negative impact on equipment demand, especially for a slower-speed technology such as ADSL. On the positive side are the upgrade projects that are being driven by competition, increasing Internet traffic, government incentives, and the desire by operators to enable new revenue-generating services such as TV over broadband. These upgrade projects increasingly drive demand for higher-speed PON, VDSL, and cable DOCSIS 3.0 equipment," Dell'Oro adds.


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