SOURCE: Infonetics Research

December 22, 2008 13:48 ET

Infonetics Research: PON market up 25% in 3Q as operators seek to max subscriber revenue, lower opex

CAMPBELL, CA--(Marketwire - December 22, 2008) - The worldwide PON OLT and ONT equipment market grew 25% to $568 million in 3Q08, reflecting the strong growth of GPON network buildouts in North America and EMEA, the continued growth of EPON subscribers in Japan and Korea, and the phenomenal growth of EPON infrastructure in China to support FTTB deployments, says market research firm Infonetics Research in a new report.

The report, PON and FTTH Equipment and Subscribers, shows the overall PON market is on track to finish the 2008 year up 46% over the previous year and to continue strong double-digit annual growth through 2011 as the shift from copper- to fiber-based broadband access drives growth in this market around the world.

"Based on our conversations with PON equipment vendors and network operators, we believe FTTH and FTTB deployments will be largely unaffected by the economic slowdown, as operators who have committed to these deployments, including many of the world's largest operators, will stick with those plans, because fiber-based access is such an important strategic opportunity for them. In fact, operators can now lay fiber at a lower cost than before and, in the case of Asia Pacific, government subsidization of nationwide fiber buildout efforts provide even more incentive for operators to continue with their rollouts," said Jeff Heynen, directing analyst for broadband and video at Infonetics Research.

Other highlights from the report:

    
--  Due primarily to heavy increases in PON deployments in China, where
    the major operators are deploying EPON-based FTTB networks in major
    metropolitan areas and will continue to do so through 2011, Infonetics has
    increased its long-term PON equipment forecast significantly
--  Quarter-over-quarter from 2Q08 to 3Q08, the EPON equipment segment is
    up 38%
--  Year-over-year from 3Q07 to 3Q08, the GPON segment is up 269%
--  It's a very tight race for overall PON vendor market share, with
    Mitsubishi and Alcatel-Lucent in the #1 and #2 spots for 3Q08 worldwide
    revenue, respectively
--  Alcatel-Lucent widens its lead in the fast growing GPON segment in
    3Q08, now with close to half of all GPON revenue, largely due to its
    Verizon for FiOS deployments
--  Cisco and PacketFront continue running neck and neck in the Ethernet
    FTTH equipment market, separated by only 1 point in worldwide revenue share
    in 3Q08
--  Worldwide BPON, EPON, and GPON subscribers are forecast to top 46
    million in 2011
    

Infonetics' report tracks Alcatel-Lucent, Allied Telesis, Alloptic, Calix, Ciena (World Wide Packets), Cisco, Corecess, ECI, Ericsson, FiberHome, Fujitsu, Furukawa Electric, Hitachi, Huawei, LG Nortel (Novera Optics), Mitsubishi, Motorola, NEC, Nokia Siemens Networks, Occam Networks, PacketFront, Sagem, Samsung, Sumitomo, Telco Systems, Tellabs, UTStarcom, ZTE, and others.

The report provides market share, market size, 2007 to 2011 forecasts, and analysis for 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) and subscribers (PON, PON FTTH, Ethernet FTTH).

For report highlights, log in to Infonetics' portal from www.infonetics.com (see Broadband). For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) 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.

Contact Information

  • Press Contact:
    Jeff Heynen
    Directing Analyst, Broadband and Video
    Infonetics Research
    +1 408.583.3359
    Email Contact