Broadband Equipment Market Up 14% YoY in Q1


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Broadband_Equipment.jpgThe global broadband aggregation equipment market, including DSL, PON and Ethernet FTTH, totaled $2.1 billion in the first quarter of 2015 (1Q15), a 5 percent sequential falloff, but a 14 percent gain year-over-year driven by GPON and VDSL deployments, according to a new report from IHS.

“Broadband aggregation equipment spending went above $2 billion in each of the last three quarters, so there was bound to be some slowdown to start the year,” said Jeff Heynen, research director for broadband access at IHS.  

“Though we look for spending to drop to around $7.8 billion for the full-year 2015, that total is well above historical years and shows operators’ continued commitment to providing premium fixed broadband services around the world,” Heynen said.

BROADBAND MARKET HIGHLIGHTS

  • In North America, incumbents, utilities and municipalities are feeling that FTTH and Gigabit services are giving them a chance to compete against cable companies, which are limited to asymmetric residential servicesThe competitive landscape has heated up in Latin America after years of consolidation and regulatory restrictions; Cable operators and telcos in the region are investing after years of underinvestment
    • This focus on fiber is resulting in increased spending on GPON and Ethernet FTTH equipment
  • The competitive landscape has heated up in Latin America after years of consolidation and regulatory restrictions; Cable operators and telcos in the region are investing after years of underinvestment
  • Globally, PON equipment revenue was up 18 percent in 1Q15 from the year-ago 
    first quarter 

About IHS

IHS is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

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