Broadband aggregation spending up 27% in 2010; Huawei expands lead

Campbell, CALIFORNIA, February 24, 2011—Market research firm Infonetics Research (http://twitter.com/infonetics) released its fourth quarter (4Q10) PON, FTTH, and DSL Aggregation Equipment and Subscribers market share and analysis report.

ANALYST NOTE

“Carriers increased their spending on broadband aggregation equipment by a whopping 27% in 2010 over 2009 to $7.1 billion, spurred on by significant investments by operators in China and national stimulus efforts in the US, Portugal, and elsewhere. The biggest spending increase for the year was in passive optical network equipment, followed by DSL aggregation equipment, as service providers upgrade their networks to offer subscribers premium data services to support the phenomenal growth in online video consumption, social networking, and other Web services,” notes Jeff Heynen, Infonetics Research's directing analyst for broadband access.

PON, FTTH, AND DSL AGGREGATION MARKET HIGHLIGHTS

• For the quarter, the overall broadband equipment market--including PON, DSL aggregation, and Ethernet FTTH equipment--grew just 1.7% in 4Q10 over 3Q10, as spending in Asia Pacific and EMEA increased while spending in North America and Central and Latin America declined
• For the year, every region increased annual broadband aggregation revenue, with CALA up 37.7% in 2010, APAC up 35%, North America up 20%, and EMEA up 14%
• In the Middle East, Spain, Portugal, and Russia, spending was focused on Ethernet FTTH for municipal open access network deployments and GPON deployments for large-scale, residential FTTH deployments by incumbent operators
• Operators in China continued to invest heavily in EPON and GPON FTTX equipment
• The shift from copper to fiber continued in 4Q10; DSL aggregation equipment revenue dropped 1.6% from 3Q10, and PON equipment increased 6.5%
• Huawei's broadband aggregation equipment revenue jumped 21% in 4Q10 over 3Q10 and is up 58% for the year, broadening its lead in the global broadband equipment market

REPORT SYNOPSIS

Infonetics' quarterly PON, FTTH, and DSL Aggregation report provides worldwide and regional market size, market share, analysis, and forecasts through 2015 (forecasts will be published by March 1). The report tracks DSL aggregation, 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). The report also tracks BPON, 1.25G/2.5G EPON, 2.5G GPON, 10G EPON, 10G GPON (OLT and ONTs), and Ethernet FTHH by CPE and service provider equipment.

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, UTStarcom, Zhone, ZTE, ZyXEL, and others.

Regions tracked in the report include Asia Pacific (with breakouts for China, Japan and the rest of Asia), Central and Latin America (CALA), EMEA (Europe, Middle East, Africa), North America, and worldwide.

RELATED RESEARCH

• DOCSIS 3.0 upgrades push cable broadband equipment market up 23% in 2010
• N. American carriers to reap $246B from residential video, voice, Internet services in 2010
• FTTH Equipment Vendor Ratings: Tier 1 and Tier 3 Service Provider Perspectives

FOR CLIENTS ONLY

Clients of Infonetics' Broadband Access Continuous Research Service (CRS): log on to download the latest analyst reports (http://www.infonetics.com/login):

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UPCOMING RESEARCH

See BROADBAND ACCESS on Infonetics' portal (http://www.infonetics.com/login) for more:

• Analysis Report: PON, FTTH, and DSL Aggregation Equipment and Subscribers
• Broadband CPE and Subscribers: PON, FTTH, Cable, and DSL
• Home Networking Devices
• Total Broadband Equipment, CPE, and Subscribers Pivot
• Total Broadband CPE, Home Networking, and Subscribers Pivot
• Residential Gateways Deployment Strategies: Global Service Provider Survey
• 1G/10G/40G/100G Networking Ports
• GPON Equipment Market: India, W. Europe, Central & Eastern Europe, Middle East
• Next Gen FTTH and PON Deployment Strategies: Global Service Provider Survey
• Smart Grid Service Deployment: Global Service Provider Survey

• 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 (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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