SOURCE: Infonetics Research

Infonetics Research

June 11, 2009 18:31 ET

Infonetics Research: Huawei takes lead from Alcatel-Lucent in DSL market; GPON market up, led by ALU, Huawei

CAMPBELL, CA--(Marketwire - June 11, 2009) - Communications market research firm Infonetics Research recently released the first quarter (1Q09) editions of its Broadband Aggregation Hardware and Subscribers and PON and FTTH Equipment and Subscribers reports. Highlights follow.

"In the PON market, operators took a break from purchasing in the first quarter to ingest capacity and focus on subscriber acquisition. Periodic dips like this are normal in the PON market, especially following periods of sustained OLT deployments. The continued shift from copper- to fiber-based broadband access will drive growth in the PON market around the world. Meanwhile, this shift continues to take its toll on the broadband aggregation market, a market that enjoyed solid growth for nearly a decade. Between the current economic climate, the shift in subscribers' preferences for mobile broadband connections, and slower subscriber growth in mature markets, the broadband aggregation market will continue to feel downward pressure," said Jeff Heynen, Directing Analyst, Broadband and Video, Infonetics Research.

PON MARKET HIGHLIGHTS

--  Despite a 12% increase in worldwide GPON manufacturer revenue in 1Q09,
    the overall PON market dropped 14% from 4Q08, dragged down by
    significant declines in worldwide BPON and EPON revenue
--  Year-over-year from the first quarter of 2008, the overall PON market
    is up 38%
--  By 2013, Infonetics Research forecasts total worldwide PON revenue to
    grow to $4.6 billion
--  In the very dynamic GPON market, Alcatel-Lucent and Huawei again
    increased revenue share in 1Q09
    --  Alcatel-Lucent, Huawei and Motorola are expected to continue to
        pull away from the pack over the next couple of quarters
--  Worldwide Ethernet FTTH equipment revenue decreased 40%
    quarter-over-quarter and ports decreased 30%, as municipal and
    competitive operators in EMEA and North America hit the brakes on their
    Ethernet FTTH rollouts

BROADBAND AGGREGATION MARKET HIGHLIGHTS

-- For the first time ever, Huawei surpassed Alcatel-Lucent in DSL revenue and ports shipped (Huawei also surpassed ALU in optical network hardware revenue in 1Q09)

-- Huawei's DSL shipments were buoyed by domestic Chinese operators focused on rolling out premium broadband services, and by growth in emerging markets

-- The macroeconomic slowdown impacted broadband aggregation DSL port shipments (from DSLAMs, NGDLCs, and MSAPs) this quarter, down 7% sequentially, as operators chose to sweat their existing DSL infrastructure assets and postpone or even cancel planned upgrades

-- With most developed world countries at or near the saturation point for DSL subscribers, growth is expected to come from emerging markets, primarily the Middle East, Central and Latin America, Russia, and Eastern Europe

-- VDSL port shipments are expected to grow steadily over at least the next few years, as operators deliver higher-margin premium broadband services to subscribers to support IPTV, VoIP, and online video services

-- Rural operators planning to deploy broadband aggregation equipment in the first quarter were forced to postpone their purchases until the rules and definitions of the $7.2 billion US Broadband Stimulus Package were clarified

REPORT SYNOPSES

Infonetics' quarterly reports provide worldwide and regional market size, market share, analysis, and forecasts through 2013, and include customizable pivot tables.

The PON report tracks BPON, EPON, GPON, and WDM-PON equipment, FTTH and FTTB OLTs and ONTs, and FTTH and Ethernet FTTH CPE and service provider equipment, as well as ports (PON, POTS, Ethernet, DSL). Companies tracked Alcatel-Lucent, Allied Telesis, Alloptic, Calix, Ciena, Cisco, Corecess, Dasan, Dionet, ECI, Ericsson, FiberHome, Fujitsu, Furukawa, Hitachi, Huawei, LG Nortel, Mitsubishi, Motorola, NEC, Nokia Siemens, Occam, Oki, PacketFront, Sagem, Salira, Samsung, Sumitomo, Telco Systems, Tellabs, Ubiquoss, UTStarcom, ZTE, and others.

The broadband hardware report tracks MSAPs, next gen DLCs, ATM and IP DSLAMs, ports (ADSL, G.SHDSL, VDSL, PON OLT, Ethernet OLT, and DS0s), and DSL subscribers (ADSL/ADSL2+, VDSL/VDSL2, and G.SHDSL). Companies tracked include ADTRAN, Alcatel-Lucent, Allied Telesis, Calix, Ciena, Corecess, Dasan, ECI, Enablence, Ericsson, Fujitsu, Huawei, Iskratel, Millinet, Motorola, NEC, Nokia Siemens, Occam, Samsung, Sumitomo, Tellabs, Tellion, UTStarcom, Woojyun, Zhone, ZTE, ZyXEL, and others.

FOR MORE INFORMATION OR TO BUY THIS REPORT

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FOR SALES:

--  Larry Howard, Vice President: larry@infonetics.com, +1 (408) 583-3335
--  Scott Coyne, Senior Account Director, Eastern North America, Europe,
    Middle East: scott@infonetics.com, +1 408.583.3395
    

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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