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DSL growth flattens, as PON fiber build outs take root

Infonetics Research’s quarterly update out this week on broadband equipment, notes a big swing in favor of fiber over DSL and says that the US GPON ma

By PETER WHITE

Published: 26 May, 2011

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Infonetics Research’s quarterly update out this week on broadband equipment, notes a big swing in favor of fiber over DSL and says that the US GPON market will regain momentum over the next few quarters, with Verizon accelerating its FiOS buildout and with Broadband Stimulus deployments.

Highlights point out that Calix’s Ethernet FTTH equipment revenue shot up 222% this quarter, due to Broadband Stimulus grants rolling out Ethernet fiber to the home networks and the global PON market jumped 20% in 1Q11 sequentially against 4Q10, taking it over $1 billion for the first time ever.

In China Huawei and ZTE benefited the most from Chinese operator spending on EPON and GPON equipment this quarter, despite being equally hammered by the decline in spending on DSL equipment.

The report tracks all manner of ports including ADSL, G.SHDSL, VDSL, PON OLT, Ethernet OLT, and DS0s).

Infonetics says that DSL, PON, and Ethernet FTTH equipment markets reversed a small fourth quarter gain with a 2% decline in 1Q11, dipping to $1.96 billion worldwide, which was led by a double-digit sequential drop in DSL infrastructure spending in all regions. That still means DSL is up 36% year on year, but not sequentially. The main spending is new spending in China and sustained growth in Japan and Korea. EPON spending is up 46% sequentially since 4Q10.

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