Asia and the U.S. Expected to Drive PON Market Growth over the Next Five Years

Redwood City, Calif. – July 30, 2007 – Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, announced today that its recent Access market report forecasts worldwide PON equipment revenues will reach almost $2 billion by 2011, a 70% increase from last year. According to the report, the PON subscriber base is expected to increase five-fold over the next five years driven by increasing migration of subscribers from slower speed broadband service, such as ADSL, to this high speed service.

“Over the next five years, we expect the PON market will continue to be concentrated in Asia and North America, but also believe we’ll start seeing significant deployments in parts of Europe,” said Tam Dell’Oro, Founder of Dell’Oro Group. “The market drivers differ between geographic regions. For example, deployments in Japan and Korea benefit from favorable government policy, while shipments in the U.S. are driven by traditional telecom operators, such as Verizon, offering TV services that are competitive with those offered by cable operators. In Europe, we believe PON deployments will be most significant in countries, such as France, where competition is strong from alternative operators,” 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 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 enable 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.