PON Subscribership Climbs

REDWOOD CITY, Calif. -- According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, more than 700 thousand subscribers purchased Passive Optical Network (PON) services during the second quarter of 2006 -- the largest ever in a single quarter -- driving more sales of PON customer premise equipment, or Optical Networking Terminals (ONT). The report also indicates a slow down of port shipments of PON equipment for Service Provider networks, named Optical Line Terminals (OLT).

"Service providers took a temporary pause purchasing OLTs in the first half of this year as they waited for subscribers to catch up with capacity installed during the recent PON infrastructure build-out," said Tam Dell'Oro, President and Founder of Dell'Oro Group. "But, we are now seeing a growing number of Internet users, especially in Japan and parts of North America, signing up for high speed PON service. These new subscribers are driving sales of ONTs and consuming excess network capacity, which should result in Service Providers resuming their purchases of OLTs in upcoming quarters," Dell'Oro added.

The report shows Sumitomo and Mitsubishi are the leading suppliers for PON equipment in Japan, and Tellabs and Calix are the leading suppliers in North America.

Dell'Oro Group

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