Ethernet FTTH equipment sales up 21%, PON sales up 8% in 3Q07

Worldwide PON equipment sales, including BPON, EPON, and GPON, sequentially grew 8% in the third quarter of 2007, reaching $422.8 million, says Infonetics Research in its PON and FTTH Equipment and Subscribers report.

Sales of Ethernet FTTH equipment are up as well, surging 21% quarter over quarter, the report shows.

"Both PON and Ethernet FTTH continue to grow at a decent clip, with significant growth expected in the upcoming quarters as more incumbent operators begin their FTTH and FTTB rollouts, particularly those using GPON, in earnest. We expect to see heavy price competition among vendors to secure these larger deals and corresponding pressure on component suppliers to wring as much cost out of equipment to ensure some level of profitability for the manufacturers," said Jeff Heynen, directing analyst at Infonetics Research.

Other report highlights:

--  In 3Q07, FTTH CPE spending accounts for 59% of worldwide FTTH sales;
    FTTH non-CPE spending accounts for 41%
--  In 2007, 53% of all Ethernet FTTH subscribers will come from EMEA
--  The number of worldwide PON subscribers is forecast to grow to 33.6
    million in 2010, 66% of which will be EPON subscribers, and 73% of which
    will hail from Asia Pacific
--  Mitsubishi, with its ongoing shipments of EPON OLTs and ONTs to NTT,
    leads in overall worldwide PON market share for revenue and ports shipped
    in 3Q07
--  Alcatel-Lucent leads in the fast-growing GPON market, Mitsubishi leads
    in the EPON market, and Tellabs, with its ongoing shipments to Verizon,
    leads the BPON market share by a long shot

Infonetics' report tracks PON equipment revenue and ports, including BPON, EPON, GPON, OLTs, and ONTs with FTTH vs. FTTB splits; Ethernet FTTH equipment, including CPE and service provider equipment; and total FTTH equipment, including CPE and non-CPE. The report also tracks PON, POTS, Ethernet, and DSL ports; and PON, PON FTTH, and Ethernet FTTH subscribers.

Companies tracked in the report include Alcatel-Lucent, Allied Telesis, Alloptic, Atrica, Calix, Cisco, Corecess, ECI, FiberHome, FlexLight, Fujitsu, Furukawa Electric, Hitachi, Huawei, Mitsubishi, Motorola, NEC, Nokia Siemens Networks, Occam Networks, PacketFront, Samsung, Sumitomo, Tellabs, Terawave, UTStarcom, Wave7 Optics, World Wide Packets, ZTE, and others.

Download report highlights by logging in to Infonetics' access portal from www.infonetics.com (see the Broadband Networks area). For sales, contact Larry Howard, vice president, at larry@infonetics.com or 1 (408) 583-3335.

Infonetics Research ( www.infonetics.com ) is an international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Press Contact: Jeff Heynen Directing Analyst, IPTV and Next Gen OSS/BSS Infonetics Research 1 408.583.3359 Email Contact