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Spending on DSL, PON, and FTTH equipment fall

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Deepa
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BANGALORE, INDIA: Spending on DSL, PON, and FTTH equipment decreased seven per cent in 1Q13 from 4Q12, to $1.5 billion worldwide. PON equipment revenue in EMEA dropped 50 per cent in 1Q13, following two quarters of double-digit increases, due to seasonality and the conclusion of initial GPON purchases by Russian and Middle Eastern operators, finds market research firm Infonetics Research.

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"The broadband aggregation equipment market is off to a difficult start this year, with overall revenue down both sequentially and from the year-ago first quarter, though there is significant disparity in results between regions and technologies," observes Jeff Heynen, principal analyst, Broadband Access and Pay TV at Infonetics Research.

Despite a five per cent decline in worldwide GPON revenue and a four per cent decrease in EPON equipment revenue, Huawei maintained its worldwide revenue lead in the overall broadband aggregation equipment market, with 33 per cent market share.

"The EMEA region (Europe, the Middle East and Africa) was hit hardest, with spending on DSL, PON, and FTTH equipment down 27 per cent from the previous quarter, putting an end to three consecutive quarters of growth," Heynen continues. "In China, we saw a big drop in EPON spending but an eighth consecutive quarter of growth for GPON as China Telecom and China Unicom continue their GPON-based FTTH deployments to provide 20 million access to subscribers. Meanwhile, North America bucked the trend and avoided its typical first-quarter softness as operators increased spending to fight the aggressive DOCSIS 3.0 initiatives by cable operators."

Alcatel-Lucent maintained second place in the overall broadband aggregation market, followed by ZTE, which is having a tough few quarters as it gouges prices to win a piece of China Telecom's FTTX business.

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