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PON and VDSL will Lead Broadband Access Market Growth Over the Next Five Years, According to Dell’Oro Group

REDWOOD SHORES, Calif. – January 25, 2006 – In a newly published report, Dell’Oro Group forecasts that revenue for passive optical networking (PON) equipment in 2010 will be 60 percent higher than in 2005, and will have tripled from 2004 levels. The report predicts revenue for another high speed broadband technology, VDSL, will also triple from 2005 to 2010 while revenue for slower speed ADSL equipment will be cut in half over the same period.

"Many telecom service providers are upgrading their networks to offer more high bandwidth services to compete head-on with the cable operators," said Steve Nozik, Principal Analyst for Broadband Access Research at Dell’Oro Group. "For example, a robust and competitive video offering, including IPTV, requires more bandwidth and increased quality-of-service over current telecom service provider networks. Many service providers are eager to offer video service to increase revenues and compete with cable operators who are invading traditional telecom markets by offering voice service through VoIP," he added.

According to the report, changing dynamics are on the horizon for the Access equipment market as the level of new subscribers accelerates to high-speed technologies such as VDSL and PON at the same time overall levels of new broadband subscriber additions are expected to fall (after 2005).

About the Report

The Dell’Oro Group 5-Year Forecast Report provides a complete overview of the broadband access industry, with tables covering manufacturers' revenue, average selling prices, and port/unit shipments for DSL and cable equipment, including Cable Modem Termination Systems (CMTS), Digital Subscriber Line Access Multiplexers ([DSLAMs] by technology ADSL, ADSL2+, G.SHDSL, VDSL), and Customer Premises Equipment (CPE) by technology Voice-over-IP (VoIP) or data-only. To purchase this report, call +1.650.622.9400.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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