Press Release

14 Percent Increase for Broadband Equipment Market from a Year Ago as GPON, VDSL Take Hold

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Campbell, CALIFORNIA (June 8, 2015)—The global broadband aggregation equipment market, including DSL, PON and Ethernet FTTH, totaled $2.1 billion in the first quarter of 2015 (1Q15), a 5 percent sequential falloff, but a 14 percent gain year-over-year driven by GPON and VDSL deployments, according to a new report from IHS (NYSE: IHS). 

“Broadband aggregation equipment spending went above $2 billion in each of the last three quarters, so there was bound to be some slowdown to start the year,” said Jeff Heynen, research director for broadband access at IHS.  

“Though we look for spending to drop to around $7.8 billion for the full-year 2015, that total is well above historical years and shows operators’ continued commitment to providing premium fixed broadband services around the world,” Heynen said.

BROADBAND MARKET HIGHLIGHTS

  • In North America, incumbents, utilities and municipalities are feeling that FTTH and Gigabit services are giving them a chance to compete against cable companies, which are limited to asymmetric residential servicesThe competitive landscape has heated up in Latin America after years of consolidation and regulatory restrictions; Cable operators and telcos in the region are investing after years of underinvestment
    • This focus on fiber is resulting in increased spending on GPON and Ethernet FTTH equipment
  • The competitive landscape has heated up in Latin America after years of consolidation and regulatory restrictions; Cable operators and telcos in the region are investing after years of underinvestment
  • Globally, PON equipment revenue was up 18 percent in 1Q15 from the year-ago 
    first quarter 

ANALYST CONFERENCE CALL

Clients: Log in to view analyst Jeff Heynen’s broadband market recap and outlook, live June 9 at 11:00 AM ET or on-demand: www.infonetics.com/cgp/login.asp?id=939

BROADBAND REPORT SYNOPSIS

The quarterly IHS Infonetics PON, FTTH, and DSL Aggregation Equipment market research report tracks BPON, EPON, GPON, FTTH, FTTB, PON and DSL aggregation equipment and subscribers. The research service provides worldwide and regional market size, vendor market share, forecasts through 2019, analysis and trends. Vendors tracked include Adtran, Alcatel-Lucent, Alphion, Arris, Calix, Cisco, Dasan Networks, ECI, Fiberhome, Fujitsu, Genexis, Hitachi, Huawei, Iskratel, Mitsubishi, NEC, OF Networks, PacketFront, Sagemcom, Sumitomo, Tilgin, Ubiquoss, UTStarcom, Zhone, ZTE, ZyXel, others. To purchase the report, please visit :www.infonetics.com/contact.asp.

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About IHS (www.ihs.com)

IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2015 IHS Inc. All rights reserved.

 
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