Alcatel Still Dominates DSL

SAN JOSE, Calif. -- Worldwide total DSL aggregation hardware DSL ports declined 4% in 1Q04 from the monster 4Q03, and revenue was down 6%, while worldwide DSL CPE revenue fell 3% but units grew 12%, according to Infonetics Research's DSL Aggregation Hardware and DSL CPE quarterly worldwide market share and forecast reports. "We saw great ADSL shipments in the previous quarter, and the first quarter of the year is typically low, so the slightly down quarter is no surprise," said Michael Howard, principal analyst of Infonetics Research and lead author of the DSL Aggregation Hardware report. "But money is still being spent on ADSL: We project revenue to increase to $1.41 billion in the first quarter of 2005. We still believe the DSL market has shifted into high gear, as it was preceded by five straight quarters of DSL port growth in the double-digit percents."

DSL Aggregation Hardware Market Highlights

"The DSL CPE market is achieving double-digit percent unit growth in an attempt to match the installed base of DSLAM and next gen DLC DSL port deployments, but to achieve this growth, CPE prices fell noticeably in the first quarter of the year," said Richard Webb, directing analyst and lead author of the DSL CPE report. "We forecast units to grow 57% between 2003 and 2007, while revenue will inch up only 8%. As higher functionality DSL CPE decreases in price, existing broadband users will upgrade from basic ADSL modems to units with wireless or voice, or possibly VDSL/G.SHDSL CPE."

DSL CPE Market Highlights

The DSL Aggregation Hardware and DSL CPE reports track DSL CPE, ATM DSLAMs, IP DSLAMs, next gen DLCs, and BLCs. Worldwide and regional market share and forecasts are updated quarterly and cover all regions (worldwide, North America, EMEA, Asia Pacific, CALA).

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