PON equipment sales up 78% year-over-year, says Dell'Oro

August 30, 2005 Redwood City, CA -- Dell'Oro Group today launched research coverage of the market for passive optical networking (PON) equipment, with publication of its "PON Quarterly Report" for the second quarter of 2005. According to the report, worldwide PON equipment revenue grew 78% during the quarter, as compared with the same period a year ago.

August 30, 2005 Redwood City, CA -- Dell'Oro Group today launched research coverage of the market for passive optical networking (PON) equipment, with publication of its "PON Quarterly Report" for the second quarter of 2005. According to the report, worldwide PON equipment revenue grew 78% during the quarter, as compared with the same period a year ago.

The report says that Q2 2005 revenues for the world's leading PON manufacturers (by rank: Sumitomo, UTStarcom, and Tellabs) topped out at $235 million. Leading vendors for optical line terminal (OLT) PON port shipments in North America during Q2, according to the report, were Tellabs, Optical Solutions, and Alcatel, with approximately 77% combined market share.

Despite year-over-year growth, the report notes that PON sales declined 6% in Q2 versus the first quarter of 2005. 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 Q2.

"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."

The firm says the new report supplements its Group Access market research service by delivering in-depth market data and analysis on PON OLTs and optical networking terminals (ONTs).

"Adding the PON market research service adds to our existing extensive coverage," concludes Tam Dell'Oro, founder and president of Dell'Oro Group. "Today's announcement demonstrates our commitment to leading the industry with solutions that our clients need to improve their ability to understand the market dynamics in the networking and telecommunications markets."

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