PON equipment sales surge 78%

Nov. 1, 2005

Worldwide PON equipment revenue grew 78% during the second quarter of this year, compared with the same period a year ago, according to a report by Dell’Oro Group (Redwood City, CA). The report says 2Q05 revenues for the world’s leading PON manufacturers-by rank: Sumitomo, UTStarcom, and Tellabs-topped out at $235 million. Leading vendors for OLT PON port shipments in North America during the quarter were Tellabs, Optical Solutions, and Alcatel, with approximately 77% combined market share.

“A very strong surge of PON subscribers in Japan is driving PON equipment sales growth,” observes Jimmy Yu, senior analyst for PON research at Dell’Oro Group. “Despite some softness in the PON market this quarter as Japan transitioned from BPON to gigabit-speed EPON, Japanese service providers are planning to add more than a million subscribers this year. With this growth, the PON market should almost double to more than $1 billion in 2005.”

Despite year-over-year growth, the report notes that PON sales declined 6% in second quarter versus the first quarter of this year. The report also notes that while Japan has the largest PON subscriber base, revenue and port shipment growth occurred in both Japan and North America in the second quarter.

The report, “PON Quarterly Report,” supplements the firm’s access market research service by delivering in-depth market data and analysis specifically on PON optical line terminals and PON optical networking terminals. The “Quarterly Access Report” provides complete coverage of the market with tables covering manufacturers’ revenue, average selling prices, and port/unit shipments for cable, DSL, and PON equipment. For more details on both reports, visit www.delloro.com.

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