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PON Drives Higher Sequential Revenue in Access Market

DSL and Cable Sales Lag

Redwood City, Calif. – August 26, 2009 – Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, announced today that worldwide revenue for DSL, Cable and PON Access equipment recorded the first sequential increase in a year, propelled by strong EPON shipments to China and Japan in the second quarter of 2009. Combined Access revenue increased 2 percent over the previous quarter, but was 19 percent lower over the year-ago period. PON continues to be the bright spot in the market, as exhibited by its double-digit revenue growth both sequentially and over the year-ago period. On the other hand, DSL and Cable each experienced steep declines over the year-ago period.

"Two important factors impacting demand for Access equipment are broadband subscriber additions and network upgrades," said Tam Dell'Oro, President of Dell'Oro Group. "Total broadband subscriber additions have been lower since the peak year of 2006, and are having a negative impact on equipment demand, especially for a slower-speed technology such as ADSL. On the positive side are the upgrade projects that are being driven by competition, increasing internet traffic, government incentives, and the desire by operators to enable new revenue-generating services such as TV over broadband. These upgrade projects increasingly drive demand for higher-speed PON, VDSL, and Cable DOCSIS 3.0 equipment," Dell'Oro added.

About the Report

The Dell’Oro Group Access Quarterly 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 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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