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.
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By Matthew Peach