Emerging Regions and Alternative Operators Drive Record DSL Access Concentrator Port Shipments

Alcatel-Lucent and Huawei Are Largest Beneficiaries

Redwood City, Calif. – August 16, 2007 – According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, DSL access concentrator port shipments surged to a record level in the second quarter of 2007 and grew 22 percent over the prior quarter. All major regions of the world reported higher port shipments during the quarter, with Asia having the largest increase followed by Europe, Middle East and Africa.

“Much of the growth in the second quarter can be attributed to infrastructure build-outs in emerging regions, including China and Eastern Europe” said Tam Dell’Oro, President of Dell’Oro Group. “Growth in parts of Western Europe, including Germany, the UK, Italy and France, is also being fueled by network build-outs by alternative operators who are having success gaining broadband subscribers over incumbent operators. Both Alcatel-Lucent and Huawei gained share in the quarter benefiting from their presence in these growth markets,” Dell’Oro added.

The report also shows that the modestly higher port shipments to North America in the second quarter were largely driven by increasing Alcatel-Lucent deployments of VDSL for AT&Ts U-verse IP-based video service.

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.