GPON fuels broadband market to grow 9% to $8.2 bn in 2014

Broadband aggregation equipment increased 9 percent to $8.2 billion in 2014 – powered by sales of Gigabit Passive Optical Network (GPON) equipment, particularly in China.

Main vendors in the fixed broadband equipment revenue market are Adtran, Alcatel-Lucent, Calix, Huawei and ZTE.

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GPON spending in China accounts for half of GPON sales in 2014, while GPON spending in Latin America rose 258 percent. Competition in Brazil combined with FTTH (fiber-to-the-home) projects in Mexico and Colombia assisted expand GPON’s reach, said Infonetics Research, now part of IHS.

Broadband Equipment Market

The broadband aggregation equipment market, including digital subscriber line (DSL), Passive Optical Network (PON) and Ethernet fiber-to-the-home (FTTH), rose 7 percent sequentially in Q4 2014 to $2.2 billion.

While GPON gained, DSL spending fell 15 percent as price erosion for asymmetric DSL (ADSL) and very-high-bit-rate DSL (VDSL) tamped revenue.

VDSL port shipments grew 3 percent in 2014, indicating to longer deployment timelines than traditional, CO based ADSL, and competition pushing providers closer to or FTTH.

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