August 17, 2006
The broadband access equipment and component markets are bearing the fruits of carrier investment in network transformation projects, according to new market reports.
Analyst firm CIR reports the FTTx components business has reemerged in the past year as carriers expand their rollouts to accomodate IPTV, and the number of subscribers on fiber-based networks is projected to grow by an additional 125 million by 2011. (See CIR Forecasts FTTx Module Market.)
Dittberner Associates Inc. reports the Asia/Pacific region continues to lead the pack in global fiber-to-the-home (FTTH) shipments, which soared 245 percent in the second quarter from just a year ago. (See FTTH Shipments Up 245%.)
Japan's NTT Communications Corp. (NYSE: NTT) accounts for over 80 percent of the total global market. Outside of Japan, the Verizon Communications Inc. (NYSE: VZ) FiOS initiative is the only other significant FTTH deployment, although several European incumbents are at various stages of trials. (See France Telecom Plans FTTH and DT, TI Set to Spend Big on Broadband.)
The growth of the FTTx business is also providing a shot in the arm for the components market as equipment vendors require high-layer chips that better enable VOIP and IPTV, as well as additional security.
CIR predicts the market for modules and components used in FTTx networks will grow from an estimated $629 million this year to more than $1.5 billion in 2011.
Dittberner has also released its "Broadband Access Quarterly Shipment Report" for the DSL equipment market. Overall DSL port shipments reached 22.3 million in the second quarter, up 16 percent year over year. Huawei Technologies Co. Ltd. reached its largest ever market share at 20 percent, behind market leader Alcatel (NYSE: ALA; Paris: CGEP:PA). (See DSL Port Shipments Up 16%.)
The rapid deployment of VDSL, which had yet to become a standard last year, means that port shipments now account for 6.7 percent of all DSL ports shipped, compared with 5 percent last year. Deutsche Telekom AG (NYSE: DT) boasts the largest VDSL2 deployment for its IPTV network. (See DT Flings Billions at Fiber Access.)
— Nicole Willing, Reporter, Light Reading
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