GPON, VDSL drive 14% growth in broadband equipment market to $2.1 bn

The global broadband aggregation equipment market — DSL, PON and Ethernet FTTH – rose 14 percent year on year and fell 5 percent quarter on quarter to $2.1 billion in Q1 2015 — driven by GPON and VDSL deployments.

Passive Optical Network (PON) equipment revenue rose 18 percent.

Jeff Heynen, research director for broadband access at IHS, said: “Though we look for spending to drop to around $7.8 billion in 2015, that total is well above historical years and shows operators’ continued commitment to providing premium fixed broadband services.”

In North America, incumbents, utilities and municipalities are spending on GPON and Ethernet FTTH equipment for offering Gigabit services to compete against cable companies.

Broadband Equipment Market in Q1 2015
Cable operators and telecoms in Latin America are investing after years of underinvestment.

Meanwhile, Dell’Oro Group, said the broadband access market — PON, DSL, and Cable technologies — reached $3 billion in Q1 2015.

The report said that the EMEA region performed exceptionally well both in PON and on the copper side of the market in VDSL.

“EMEA accounts for nearly two thirds of worldwide VDSL port shipments. Existing infrastructure and relatively poor macroeconomic conditions suggest that operators in EMEA, particularly Europe, will forego PON deployments in favor of VDSL due to the relatively higher cost to deploy,” said Alam Tamboli, senior analyst at Dell’Oro Group.

Baburajan K
[email protected]