Sunday, February 22, 2009

Dell'Oro: VDSL Port Shipments Are Silver Lining for the Declining DSL Market

DSL port shipments on infrastructure equipment fell more than 10 percent in 2008, according to a newly published report by Dell'Oro Group. Within total ports, ADSL port shipments fell almost 20 percent while VDSL port shipments grew 40 percent. The report also predicts this trend will continue in 2009 with a larger rate of decline in shipments for ADSL and a higher growth rate for those of VDSL.

The report shows Alcatel-Lucent, the leader in the VDSL segment in 2008, benefited from being the primary supplier of VDSL equipment for AT&T's U-verse TV service, currently, one of the largest TV over broadband projects of its kind. In the second position was ZyXEL with most of its VDSL shipping to Taiwan and Japan.

"The market for ADSL infrastructure equipment has matured largely due to subscriber additions peaking in 2006," said Tam Dell'Oro, President of Dell'Oro Group. "Despite the weak economy that has resulted in cautious spending by service providers, we still expect higher growth for the VDSL segment in 2009, albeit lower than previous expectations. Some service providers including AT&T are upgrading networks with high bandwidth VDSL to enable new revenue streams such as TV over broadband," Dell'Oro added.