VDSL and PON Equipment Revenues to Rise over Next Five Years, According to Dell’Oro Group

Service Providers Look to Advanced Technologies for Video Services

Redwood City, Calif. – January 29, 2007 – In a newly published report, Dell’Oro Group forecasts that combined revenue for Cable, DSL and PON access concentrators and customer premises equipment (CPE) peaked at $9.4 B in 2006 and will gradually decline over the next five years, in part due to slowing worldwide broadband subscriber net additions. Despite this anticipated market decline, revenues from VDSL are expected to more than double and PON are estimated to increase by almost 50 percent over the same period.

“Even though subscriber additions are slowing, there are still major opportunities for infrastructure equipment manufacturers to grow revenue as service providers look to new services,” said Tam Dell’Oro, Founder of Dell’Oro Group. “VDSL and PON are the two leading technologies being considered by service providers to deliver higher bandwidth required for new video services. Increasingly, manufacturers that have total end-to-end VDSL and PON solutions with professional services, will be the ones that benefit,” added Dell’Oro.

About the Report

The Dell’Oro Group 5-Year Forecast Report provides a complete overview of the broadband access industry, with tables covering manufacturers’ revenue, average selling prices, and port/unit shipments for Cable, DSL, and PON equipment. Network infrastructure equipment includes Cable Modem Termination Systems (CMTS), Digital Subscriber Line Access Multiplexers ([DSLAMs] by technology ADSL, ADSL2+, G.SHDSL, VDSL), and PON Optical Line Terminals (OLTs). Customer Premises Equipment (CPE) technology reflects Voice-over-IP (VoIP) or data-only. To purchase this report, call Karen Yang +1.650.622.9400 x222 or email Karen@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.