Monday, May 26, 2008

Dell'Oro: PON and Cable Access Infrastructure Equipment Sales Surge in Q1

PON Optical Line Terminals (OLTs) revenue increased over 50 percent in the first quarter of this year, driven by a surge in EPON and GPON deployments, according to a newly published report by Dell'Oro Group. This increase occurred at the same time that Cable Modem Termination Systems (CMTS) revenue increased by 30 percent. The report also shows that the resumption of EPON deployments in Japan helped Mitsubishi and Sumitomo overtake Tellabs for the top two spots in the PON OLT market. Cisco's sequential revenue growth almost doubled in the first quarter, and helped extend its dominance in the CMTS market.

"Demand for PON and Cable access equipment was strong in the first quarter, a trend we expect to continue throughout 2008," said Tam Dell'Oro, President of Dell'Oro Group. "PON is being driven by new GPON deployments, especially by Verizon, as well as the resumption of EPON deployments in Japan after a pause in 2007 when operators planned for next generation networks. Cable operators are resuming purchases after a slow 2007 when most operators were planning for new DOCSIS 3.0 CMTS equipment, which is now available from most Cable access vendors," Dell'Oro added.