PON and VDSL Markets Fueled by Sales to Verizon and AT&T

Tellabs and Alcatel-Lucent Lead Pack in 2007

Redwood City, Calif. – February 20, 2008 – According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, worldwide PON equipment revenues increased 10 percent in the fourth quarter of 2007 from the year ago period, driven on strong sales of BPON equipment. During the same period, access concentrator revenues from sales of another high speed technology, namely VDSL, increased more than 60 percent.

“Deployments of high-speed VDSL and PON technology are primarily being driven by competition and the desire of telecom service providers to offer video services; but build-outs have been uneven in many regions of the world” said Tam Dell’Oro, President of Dell’Oro Group. “However, we saw increasing demand for BPON and VDSL equipment in the United States through 2007. Verizon drove BPON shipments with expansion of its PON-based FIOS service while AT&T drove growth in the VDSL market as they began build-outs for their U-verse service that incorporates VDSL technology,” Dell’Oro added.

The report also shows that Tellabs, the primary BPON supplier to Verizon, was the overall lead PON vendor in 2007. Alcatel-Lucent was the VDSL market leader largely due to being the supplier of access concentrators for AT&T’s U-verse project.

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 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.