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Future DSL and Cable Equipment Sales will be More Dependant on Upgrades, According to DellOro Group

Subscriber Additions to Peak in 2006

REDWOOD CITY, Calif. – August 02, 2006 –In a newly published report, Dell’Oro Group forecasts that combined revenues for Cable, DSL, and PON access concentrators and customer premises equipment (CPE) will peak at $9.1 billion in 2006 and gradually fall to $8.2 billion in 2010—below total market revenues in 2005.

The report shows that broadband subscriber additions will peak in 2006, and service providers are already starting to focus on upgrading their access networks rather than primarily purchasing equipment to support new subscribers. The report also indicates that the volume of upgrades will increase after 2006, but the increase in revenue from upgrades will not be able to overcompensate for the historical larger revenues from new equipment sales.

“We expect telecom service providers and cable operators will have very different reasons for upgrading their networks after 2006,” said Tam Dell’Oro, Founder of Dell’Oro Group. “Telecom service providers will need additional network bandwidth to offer TV services, the last component of their triple play offering. On the other hand, cable networks currently have sufficient capacity to handle voice-video-data services. Despite this, cable operators will continue to upgrade their networks in order to be able to offer comparable bandwidth of their competitors,” added Dell’Oro.

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 Cable, DSL, and PON equipment. Network infrastructure equipment includes Cable Modem Termination Systems (CMTS), Digital Subscriber Line Access Multiplexers ([DSLAMs] by technology ADSL, G.SHDSL, and VDSL), and PON Optical Line Terminals ([OLTs] by technology BPON, EPON, and GPON). The report also covers Cable and DSL Customer Premises Equipment (CPE) technology and PON Optical Networking Terminals (ONTs). To purchase this report, call +1.650.622.9400 x225 or email Margaret@DellOro.com.

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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