Telecom market research firm RHK Inc. released market share data that shows shipments of DSL ports increased more than tenfold in the European market in 1H01, reaching 3.2 million compared to 100,000 in 2H00. Long-time rival Siemens challenged Alcatel's number one position in the DSL market by tying its 37 percent share. Other competing vendors include Inovia (ECI Telecom) with 12 percent of the market, Lucent with 5 percent, and Cisco with 4 percent. RHK finds that overall spending for European DSL equipment reached $650 million in the first half of 2001.
"In 2H00, Siemens shipped less than 10 percent of ports in Europe," explains Ian Cox, Senior Analyst for European Broadband Access. "However, Siemens has subsequently acquired two companies, strengthening its product portfolio and casting a shadow over Alcatel's dominance in the region."
According to RHK, Alcatel and Siemens are the primary suppliers of DSL in Europe, due to their high volume sales to large incumbents. Companies with smaller European market shares, such as Lucent, Cisco, and Orckit, play a large role in the CLEC segment. However, RHK notes that the CLEC business is small compared to that of the incumbents in Europe as local loop unbundling has not, so far, had a major impact on overall revenue.
RHK expects some consolidation in the market over the next six to nine months as vendors find it increasingly difficult to build profitable businesses with a small market share. Vendors will need relationships with major incumbent DSL operators, who are well positioned to offer DSL services, particularly ADSL, to their customers. RHK expects network rollouts to accelerate in France, Germany, Italy, Spain, and the United Kingdom.
"This market should continue to grow, especially in those countries where there is a large base of ISDN users and cable network penetration is high," adds Cox. "Both factors will encourage DSL providers to roll out their networks rapidly and to offer low monthly upgrade charges for DSL service."
This report is available from RHK's Broadband Access: Europe Service, which provides ongoing, detailed analysis of the DSL market. This service researches key access vendors and service providers in Europe, delivers market forecasts of access technologies, and provides analysis of the market and technology drivers influencing access networks.
RHK Inc. is an industry market research and consulting firm specializing in the analysis of advanced technologies for the public telecommunications network. The company provides subscription services and custom consulting to technology vendors, service providers, and the investment community in North America, Europe, and the Asia-Pacific region. For more information, visit www.rhk.com.