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VDSL Port Shipments Are Silver Lining for the Declining DSL Infrastructure Market

Alcatel-Lucent and ZyXEL are Top VDSL Vendors

Redwood City, Calif. – February 23, 2009 – According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, DSL port shipments on infrastructure equipment fell more than 10 percent in 2008. Within total ports, ADSL port shipments fell almost 20 percent while VDSL port shipments grew 40 percent. The report also predicts this trend will continue in 2009 with a larger rate of decline in shipments for ADSL and a higher growth rate for those of VDSL.

"The market for ADSL infrastructure equipment has matured largely due to subscriber additions peaking in 2006," said Tam Dell'Oro, President of Dell'Oro Group. "Despite the weak economy that has resulted in cautious spending by service providers, we still expect higher growth for the VDSL segment in 2009, albeit lower than previous expectations. Some service providers including AT&T are upgrading networks with high bandwidth VDSL to enable new revenue streams such as TV over broadband," Dell'Oro added.

The report shows Alcatel-Lucent, the leader in the VDSL segment in 2008, benefitted from being the primary supplier of VDSL equipment for AT&T's U-verse TV service, currently, one of the largest TV over broadband projects of its kind. In the second position was ZyXEL with most of its VDSL shipping to Taiwan and Japan.

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) and PON Optical Networking Terminals (ONTs). To purchase this report, call Emily Kendall +1.650.622.9400 x223 or email Emily@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.

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