14% boost for broadband equipment market on one year ago – HIS analysis

Created June 23, 2015
News and Business

Improvement driven by GPON, VDSL technologies taking hold

The global broadband aggregation equipment market, including DSL, PON and Ethernet FTTH, totaled $2.1 billion in the first quarter of 2015 (1Q15), a 5% sequential drop, but a 14% gain year-over-year, driven by GPON and VDSL deployments, according to a new report from IHS Infonetics.

Jeff Heynen, research director for broadband access at HIS, said, “Broadband aggregation equipment spending went above $2 billion in each of the last three quarters, so there was bound to be some slowdown to start the year.”

“Though we look for spending to drop to around $7.8 billion for the full-year 2015, that total is well above historical years and shows operators’ continued commitment to providing premium fixed broadband services around the world,” Heynen added.

Broadband market highlights

  • In North America, incumbents, utilities and municipalities are feeling that FTTH and Gigabit services are giving them a chance to compete against cable companies, which are limited to asymmetric residential services.
  • In Latin America, the competitive landscape has heated up after years of consolidation and regulatory restrictions; cable operators and telcos in this region are investing after years of underinvestment. This continental focus on fiber is resulting in increased spending on GPON and Ethernet FTTH equipment
  • Globally, PON equipment revenue was up 18% in 1Q15 from the year-ago equivalent quarter.

IHS (NYSE: IHS) is a leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. The company employs about 8,800 people in 32 countries around the world.

Link: http://press.ihs.com/press-release/technology/14-percent-increase-broadband-equipment-market-year-ago-gpon-vdsl-take-hold

By Matthew Peach

Matthew Peach

This article was written
by Matthew Peach

Matthew Peach is a freelance technology journalist specialising in photonics and communications. He has previously worked for several business-to-business publishers, editing a range of high-tech magazines and websites.