Telecom Lead Asia: Global spending on DSL, PON,
and fiber-to-the-home (FTTH) equipment declined 22 percent in the the first
quarter of 2012 (1Q12), to $1.8 billion, according to Infonetics Research.
Additionally, the market research firm said that the
broadband aggregation equipment revenue in 1Q12 declined 40 percent
sequentially. Only a handful of broadband aggregation equipment vendors managed
to increase their revenue in 1Q12, including many of the top players in Japan
such as Fujitsu, O.F. Networks, and NEC.
However, EPON spending in Japan increased 11 percent in
1Q12 from 4Q11, as NTT and KDDI are in the midst of
upgrading their FTTB+VDSL deployments to FTTH and are beginning to replace
fully depreciated EPON gear from 2004 and 2005.
There was a big 43 percent drop in Ethernet
PON spending in China that drove spending in Asia down a full third this
quarter, despite healthy increases in Japan and the rest of Asia Pacific.
“The drop in China is due mainly to a shift to FTTH
this year and coming off the heels of a record previous quarter. Another more
serious drag on the overall market was a third consecutive quarter of DSL
revenue declines in EMEA, where access network upgrade projects have stalled
because of the unstable economic environment,” said Jeff Heynen,
directing analyst for broadband access and video at Infonetics Research.
With Verizon’s FiOS and AT&T’s U-Verse
rollouts slowing, combined with seasonal softness, the North American combined
PON, DSL, and FTTH equipment markets saw 21 percent decline in 1Q12.
While the Latin American market remains fiercely
competitive, it is clear that operator spent 1Q12 absorbing the new capacity
they purchased in 4Q11, when record spending was recorded in the region.
Huawei leads the broadband aggregation equipment market, says
Infonetics
Huawei is the leading broadband aggregation equipment
market in terms of revenue share for the fourth-quarter, whilst Alcatel-Lucent
passed ZTE for the first time in a year to grab the #2 spot, according to
market research firm Infonetics
Research.
Revenue of the overall broadband aggregation equipment
market that includes DSL, PON and FTTH increased by
15 percent sequentially to $2.3 billion in the fourth-quarter of 2011, mainly
driven by heavy spending in Asia and Latin America.
editor@telecomlead.com