Healthy rebounds in DSL equipment market in Q2, Huawei and ZTE lead

Campbell, CALIFORNIA, August 25, 2011—Market research firm Infonetics Research today released excerpts from its second quarter (2Q11) PON, FTTH, and DSL Aggregation Equipment and Subscribers vendor market share and forecast report, which tracks broadband access equipment and subscribers.

ANALYST NOTE

"After a challenging first quarter, the DSL equipment market rebounded nicely in the second quarter, driven by strong activity in North America, helped by a mix of Broadband Stimulus and tier 1 carrier spending on VDSL (very high bitrate DSL lines), and in the EMEA region, where operators continue to spend on VDSL and voice ports as they retire their TDM voice lines in favor of voice over IP. Also notable this quarter is the phenomenal EPON market growth in China, where EPON spending surpassed the US$600 million mark and EPON ports surpassed the 3 million mark for the first time, thanks to China Telecom and China Unicom," notes Jeff Heynen, directing analyst for broadband access at Infonetics Research.

PON, FTTH, AND DSL AGGREGATION MARKET HIGHLIGHTS

• Total spending on PON, FTTH and DSL aggregation equipment jumped 12% to US$2.1 billion in 2Q11, with every equipment category and region showing healthy rebounds after a seasonally slow 1Q11
• Year-over-year (2Q11 compared to 2Q10), the overall broadband access market is up 26%
• The biggest increase in broadband access equipment spending in 2Q11 was in Central America and Latin America (CALA), up 40% sequentially
• GPON equipment investments jumped 56% in the EMEA region in 2Q11, following a 25% increase the previous quarter
• Huawei and ZTE hold on to their lead in the overall broadband access equipment market in 2Q11, with Huawei's revenue share increasing a bit, taking in about 1/3 of the global total

REPORT SYNOPSIS

Infonetics' quarterly PON, FTTH, and DSL Aggregation report provides worldwide and regional market size, market share, analysis, and forecasts through 2015. Revenue and ports are tracked for the following equipment: DSL aggregation (MSAPs, next gen DLCs, ATM and IP DSLAMs), BPON, 1.25G/2.5G EPON, 2.5G GPON, 10G EPON, 10G GPON, and Ethernet FTTH (CPE and service provider equipment). The report also tracks DSL subscribers by type (ADSL/ADSL2+, VDSL/VDSL2, G.SHDSL). Companies tracked: ADTRAN, Alcatel-Lucent, Allied Telesis, Calix, Ciena, Corecess, Dasan, ECI, Enablence, Ericsson, Fujitsu, Huawei, Iskratel, Millinet, Motorola, NEC, Nokia Siemens, Samsung, Sumitomo, Tellabs, UTStarcom, Zhone, ZTE, ZyXEL, and others. Regions tracked: Asia Pacific (with breakouts for China, Japan and the rest of Asia), CALA, EMEA (Europe, Middle East, Africa), North America, and worldwide.

CLIENT CONFERENCE CALL

Log in to Infonetics' portal and go to this report's “Conference Call for Clients” to join Jeff Heynen's PON, FTTH, and DSL Aggregation Equipment and Subscribers telebriefing Wednesday, Sept. 7 at 11:00 a.m. Eastern: http://www.infonetics.com/cgp/login.asp?id=424.

SALES

• Larry Howard, VP (West NA, APAC, CALA): larry@infonetics.com, +1 408-583-3335
• Scott Coyne, Sr. Account Dir. (East NA, Texas, Midwest): scott@infonetics.com, +1 408-583-3395
• George Stojsavljevic, Sr. Account Dir. (EMEA): george@infonetics.com, +44 755-488-1623

For related and upcoming research, see BROADBAND ACCESS on Infonetics' portal (http://www.infonetics.com/login), or follow the links below for more information.

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• Broadband customer premise equipment up 3% in 1Q 2011, bucking seasonal trend
• Home networking device sales up in a normally-down first quarter
• High speed network port market to hit $52 billion in 2015 (1G, 10G, 40G, 100G)
• Residential gateway survey shows strong support for IPTV; Comtrend, Cisco top vendor list
• Time Warner Building Scale with Insight
• China Unicom's PON Deployments Exceed Forecasts
• Early 2Q11 Broadband Results Show Pockets of Strength
• Fiber Not Necessarily Part of Cable's Broadband Diet

• 1G/10G/40G/100G Networking Ports
• Broadband CPE and Subscribers: PON, FTTH, Cable, and DSL
• Home Automation Service Strategies: Global Service Provider Survey
• Home Networking Devices

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.

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