PON: The Fiber Train Is Finally Starting to Slow, According to Dell’Oro Group

REDWOOD CITY, Calif., Dec. 07, 2017 -- As reported in a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the “fiber train” is finally starting to slow as PON equipment revenue declined nine percent year-over-year (Y/Y) in 3Q17, the fourth consecutive quarter of decline.

“Demand in China has been the strongest driver in the PON market over the past decade, accounting for over half of worldwide demand in recent years,” said Alam Tamboli, Senior Analyst at Dell’Oro Group. “However, demand in China has begun to slow over the past few quarters, bringing the market down as a whole. This decline is due to OLT port deployments moderating, as China Telecom and China Unicom have largely built out their GPON OLT infrastructure. On a bright note, demand outside of China continued to increase this quarter, and as the market shifts to customers outside of China, we expect the market’s revenue profile to start stabilizing,” Tamboli added.

Additional highlights from the 3Q17 Broadband Access Quarterly Report:

• For the full year 2017, Dell’Oro Group expects total PON revenue will decline by 11 percent Y/Y.
• Total DSL revenue shrank nine percent Y/Y. G.fast deployments have not ramped enough to help offset declines in ADSL and tepid results in VDSL.
• Total Cable revenue increased 10 percent Y/Y due to CPE revenue growth driven by the migration to DOCSIS 3.1 services.

About the Report
The Dell’Oro Group Broadband Access Quarterly Report provides complete, in-depth coverage of the market and data on approx. 25 vendors, including Nokia, Arris, Cisco Systems, Huawei Technologies and ZTE.  Included are tables covering manufacturers’ revenue, average selling prices, and port/unit shipments for Cable, DSL, and PON equipment - Cable Modem Termination Systems (CMTS), Digital Subscriber Line Access Multiplexers ([DSLAMs] by technology), and PON Optical Line Terminals ([OLTs] by technology).  The report also covers Cable and DSL Customer Premises Equipment (CPE) technology and PON Optical Networking Terminals (ONTs).  To purchase this report, please contact Matt Dear at +1.650.622.9400 x223 or email [email protected].

About Dell’Oro Group
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

Media Contact: Matt Dear
Phone: +1 650 622 9400 x223
Email: [email protected]