Telecom Lead India: Worldwide xDSL test equipment
market earned revenues of $279 million in 2010 and estimates this to
reach $545.7 million in 2016.
The substantial increase in T&M revenue is due the
increasing demand for Internet protocol TV (IPTV) and broadband-based video
service is spearheading the worldwide growth of xDSL test equipment market,
according to Frost & Sullivan.
The market analyst firm said that high bandwidth
requirements for IPTV and customers’ higher expectations of service uptime are
augmenting service providers to purchase the latest test equipment and service
monitoring tools.
“Simple DSL metrics are no longer sufficient to
support QoE, which has resulted in an upsurge in demand for multilayer test
equipment capable of testing the triple play architecture (voice, video and
data) in real-time. Due to heavy competition in the service provider segment,
QoE and QoS in the broadband service market will assume great importance in the
future and enable growth in the xDSL test equipment market,” said Srihari
Padmanabhan, Frost & Sullivan Senior Research Analyst.
The firm said that wireless broadband technology is
witnessing significant activity and actors such as mobility, cost of
deployment, and bandwidth are pushing subscriber migration from DSL to wireless
broadband technology.
As network equipment manufacturers develop advanced
routers and modems to optimize the reach of wireless technology, the firm
believe that the DSL technology market is expected to be negatively impacted,
restraining uptake of new xDSL test equipment.
The firm suggests that test equipment vendors must revise
their own pricing, as customers are imposing pricing pressure on them.
Furthermore, the firm proposes that participants must
perform a careful analysis of the expected return on investment and leverage
their market intelligence information to tap opportunities that lie latent in
the market.
“The xDSL test equipment market is highly
competitive, with many Tier-1 companies active in the market. This leaves
manufacturers with little control over pricing, which results in reduced profit
margins,” Padmanabhan added.
editor@telecomlead.com
