Contrary to the overall optical communications market, the access market had a good year in 2010. As an example, market research firm Infonetics Research reports in its fourth quarter (4Q10) PON, FTTH, and DSL Aggregation Equipment and Subscribers market share and analysis report that the broadband aggregation space grew 27% last year.
"Carriers increased their spending on broadband aggregation equipment by a whopping 27% in 2010 over 2009 to $7.1 billion, spurred on by significant investments by operators in China and national stimulus efforts in the US, Portugal, and elsewhere,” says Jeff Heynen, directing analyst for broadband access at Infonetics Research. “The biggest spending increase for the year was in passive optical network equipment [PON], followed by DSL aggregation equipment, as service providers upgrade their networks to offer subscribers premium data services to support the phenomenal growth in online video consumption, social networking, and other Web services."
Other highlights from the report include:
- For the quarter, the overall broadband equipment market -- including PON, DSL aggregation, and Ethernet FTTH equipment -- grew just 1.7% in 4Q10 over 3Q10, as spending in Asia Pacific and EMEA increased while spending in North America and Central and Latin America declined.
- For the year, every region increased annual broadband aggregation revenue, with CALA up 37.7% in 2010, APAC up 35%, North America up 20%, and EMEA up 14%.
- In the Middle East, Spain, Portugal, and Russia, spending was focused on Ethernet FTTH for municipal open access network deployments and GPON deployments for large-scale, residential FTTH deployments by incumbent operators.
- Operators in China continued to invest heavily in EPON and GPON FTTX equipment.
- The shift from copper to fiber continued in 4Q10; DSL aggregation equipment revenue dropped 1.6% from 3Q10, and PON equipment increased 6.5%.
- Huawei's broadband aggregation equipment revenue jumped 21% in 4Q10 over 3Q10 and is up 58% for the year, broadening its lead in the global broadband equipment market.
Infonetics' quarterly PON, FTTH, and DSL Aggregation report provides worldwide and regional market size, market share, analysis, and forecasts through 2015 (forecasts will be published by March 1).
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