Vectoring trials will continue throughout 2014 and we expect more announcements regarding commercial availability, similar to the recent announcement by Belgacom.
ONT/ONU shipments will also remain strong in 2014 as FTTH subscribers are brought onto networks. 1G is gaining mindshare as several service providers see bandwidth as a differentiator.
OLT port shipments will not grow without a significant, new FTTH PON deployment.
PON vendors are finding non-FTTH market niches including optical LAN and mobile traffic backhaul. We expect to see expansion in both market niches in 2014. PON for mobile backhaul could boost the next-gen PON market.
CMTS shipments will remain steady in 2014. The largest unknown is the pending Comcast acquisition of Time Warner, which could help or hurt this market depending on capex plans.
Julie Kunstler, principal analyst, said: “While pricing pressures will continue, we expect strong shipments in vectoring ready VDSL, PON ONTs/ONUs and CMTS.”