PON Market Revenues Resume Growth After Lull in Deployments

Siemens Gains Share with Build-outs in Korea

Redwood City, Calif. – May 17, 2007 – According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, revenue from shipments of PON equipment, including both Optical Line Terminals and Optical Networking Terminals, increased almost 20 percent in the first quarter of 2007 over the prior quarter.  This was the first increase in PON market revenue since the second quarter of 2006 when Japan, the leader in deploying PON technology, was driving growth through widespread new build-outs of this technology.

We had expected a brief lull in PON revenue after the initial build-outs in Japan were completed," said Tam Dell'Oro, President of Dell'Oro Group. "We are now seeing a resumption of revenue growth in Japan with service providers buying additional capacity driven by accelerating subscriber additions to this higher speed technology. In addition, first quarter revenue growth was driven by initial PON build-outs in Korea as well as continued strong demand by Verizon for its PON based FIOS deployments in the US," Dell'Oro added.

The report shows that Siemens, through its affiliate Dasan Networks, was the big winner in the first quarter gaining 10 points of revenue share driven by deployments in Korea. Mitsubishi remains the market leader followed by Tellabs, Siemens and Sumitomo.

About the Report

The Dell’Oro Group Quarterly Access Report provides complete, in-depth coverage of the market 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, G.SHDSL, and VDSL), and PON Optical Line Terminals ([OLTs] by technology BPON, EPON, and GPON). The report also covers Cable and DSL Customer Premises Equipment (CPE) technology and PON Optical Networking Terminals (ONTs). To purchase this report, call Margaret Miles +1.650.622.9400 x225 or email Margaret@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.