Tighter spending in China and Europe squeezes broadband aggregation market in 1Q12

Campbell, CALIFORNIA, May 24, 2012—Global spending on DSL, PON, and fiber-to-the-home (FTTH) equipment declined 22% between the fourth quarter of 2011 (4Q11) and the first quarter of 2012 (1Q12), to $1.8 billion, reports market research firm Infonetics Research in its quarterly PON, FTTH, and DSL Aggregation Equipment and Subscribers market share and forecast report, which analyzes the fixed broadband access market and the vendors within it.

"In addition to seeing a first-quarter lull as we often do in the worldwide broadband aggregation market, there was a big 43% drop in Ethernet PON spending in China that drove spending in Asia down a full third this quarter, despite healthy increases in Japan and the rest of Asia Pacific. The drop in China is due mainly to a shift to FTTH this year and coming off the heels of a record previous quarter. Another more serious drag on the overall market was a third consecutive quarter of DSL revenue declines in EMEA, where access network upgrade projects have stalled because of the unstable economic environment," explains Jeff Heynen, directing analyst for broadband access and video at Infonetics Research.

PON, FTTH, AND DSL AGGREGATION MARKET HIGHLIGHTS

• Despite a 40% sequential decline in broadband aggregation equipment revenue in 1Q12 from the previous quarter, Huawei maintains its worldwide revenue lead (though with significantly less share), followed by ZTE and Alcatel-Lucent
• Only a handful of broadband aggregation equipment vendors managed to increase their revenue in 1Q12, including many of the top players in Japan: Fujitsu, O.F. Networks, and NEC
• EPON spending in Japan increased 11% in 1Q12 from 4Q11, as NTT and KDDI are in the midst of upgrading their FTTB+VDSL deployments to FTTH and are beginning to replace fully depreciated EPON gear from 2004 and 2005
• With Verizon’s FiOS and AT&T’s U-Verse rollouts slowing, combined with seasonal softness, the North American combined PON, DSL, and FTTH equipment markets saw 21% declines in 1Q12
• While the Latin American market remains fiercely competitive, it is clear that operators spent 1Q12 absorbing the new capacity they purchased in 4Q11, when record spending was recorded in the region

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, Corecess, Dasan, ECI, Ericsson, Fiberhome, Fujitsu, Huawei, Iskratel, Millinet, Mitsubishi, Motorola, NEC, Nokia Siemens, OFN, Sumitomo, Tellabs, UTStarcom, Zhone, ZTE, ZyXEL, and others. To buy report, contact Infonetics sales.

Jeff Heynen’s Client Conference Call with highlights from this report is June 6, 9:30 a.m. PT.

RELATED RESEARCH

• Latest Infonetics Broadband Access research newsletter: http://bit.ly/MLcoi8
• Operators using residential gateways to boost broadband revenue via home automation, video
• Record year for broadband aggregation, record quarter for PON equipment
• Cable broadband market sees massive growth in CMTS ports; Cisco nears all-time market share high
• Operators look to home automation to increase revenue and customer loyalty
• Broadband CPE and home networking vendors make push towards premium services; ZTE surges
• Operators looking at next gen FTTH technologies will wait for prices to drop
• GPON equipment investment in Europe, India and Middle East far outpaces subscribers

UPCOMING RESEARCH

See BROADBAND ACCESS at http://www.infonetics.com/login for report highlights, tables of contents, etc.

• Log in to download Infonetics’ 2012 Research Publication Calendar: http://bit.ly/zwjcRs
• 1G/10G/40G/100G Networking Ports Market Size/Forecasts
• Broadband CPE & Subscribers: PON, FTTH, Cable & DSL Market Share/Forecasts
• CMTS and Edge QAM Hardware and Subscribers Market Share and Forecasts
• GPON Equipment in Brazil, Russia, India, and China (BRIC) Market Share and Forecasts
• Home Networking Devices Market Share and Forecasts
• Next Gen PON, FTTH & VDSL Strategies and Vendor Leadership: Service Provider Survey
• PON, FTTH, and DSL Aggregation Equipment and Subscribers – Full Analysis
• Total Broadband Equipment, CPE, and Subscribers Pivot Market Share and Forecasts

TO BUY REPORTS, CONTACT SALES:

• N. America (West), Asia, Latin America: Larry Howard, larry@infonetics.com, +1-408-583-3335
• N. America (East), Texas, Midwest: Scott Coyne, scott@infonetics.com, +1-408-583-3395
• Europe, Middle East, Africa: George Stojsavljevic, george@infonetics.com, +44-755-488-1623
• Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

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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