China's Appetite for Broadband Driving Growth in CPE Market
October 2, 2015 | IHSEstimated reading time: 1 minute
IHS raised its outlook for the broadband customer premises equipment (CPE) market, which includes DSL, cable, fiber-to-the-home (FTTH), residential gateways and mobile broadband CPE. In a September report, the firm noted it increased its 2019 worldwide broadband CPE forecast by 8 percent, to US$12.4 billion.
"The primary source for raising our global broadband CPE forecast is the massive investment currently ongoing in China. Despite reported economic headwinds, the Chinese government continues to subsidize telco investments in fiber infrastructure to expand accessibility and throughput. The result is heavy spending on GPON and EPON ONTs," said Jeff Heynen, research director for broadband access and pay TV at IHS.
“At the same time, the shift from fiber-to-the-building (FTTB) to FTTH architecture is well underway in China. A primary reason for this architectural shift is that FTTB plus ADSL take-rates at China Telecom have been disappointing; consumers aren't interested in a connection that offers only a marginal improvement over what they already have. If they are to subscribe to a home broadband service, it needs to provide a minimum of 8MB to 10MB speeds,” Heynen said.
BROADBAND CPE MARKET HIGHLIGHTS
- The big story this quarter is FTTH optical network terminals (ONTs) in China, unit shipments of which more than doubled year-over-year, from 9.8 million to over 20 million from 2Q14 to 2Q15
- In 2Q15, the global broadband CPE market grew 5 percent from the previous quarter, to $2.9 billion; unit shipments grew 11 percent, to 61 million
- Worldwide total broadband CPE revenue is up 7 percent from the year-ago second quarter, when it was just under $2.7 billion
- Quarter-over-quarter, from 1Q15 to 2Q15:
- DSL CPE unit shipments were down 1 percent to 23 million, with VDSL IADs posting the highest growth (+11 percent)
- Cable CPE units were up 1 percent to 11.6 million (90% of which were WiFi-enabled), with DOCSIS 3.0 modems posting the highest growth (+13 percent)
- Fixed LTE CPE shipments grew 4 percent
Suggested Items
Mycronic Releases Interim Report January–March 2024
04/18/2024 | MycronicNet sales increased 39 percent to SEK 1,692 (1,219) million. Based on constant exchange rates, net sales increased 42 percent.
Global Semiconductor Sales Increase 16.3% Year-to-Year in February
04/04/2024 | SIAThe Semiconductor Industry Association (SIA) announced global semiconductor industry sales totaled $46.2 billion during the month of February 2024, an increase of 16.3% compared to the February 2023 total of $39.7 billion but a decrease of 3.1% from the January 2024 total of $47.6 billion.
Global Sourcing Spotlight: Don’t Be Afraid of Global Sourcing
04/03/2024 | Bob Duke -- Column: Global Sourcing SpotlightOn paper, it doesn’t seem like a great time for global sourcing. With several world conflicts, it may seem impossible to think that something like global sourcing and commercial trade between countries could begin to alleviate this tension between warring countries. But hey, I’ve always been a glass-half-full guy, so humor me. While trade between countries can indeed foster cooperation and contribute to peace in several ways, it's essential to recognize that it's not a panacea for all global issues. However, here are some ways in which trade can contribute to peace and global stability.
Management Change at Mycronic
03/19/2024 | MycronicAs a result of the preparations ahead of a possible listing of Axxon on a stock exchange in China, effective March 19, 2024, Ivan Li leaves Mycronic’s executive management but remains as Head of Axxon, the core of Mycronic´s High Volume division.
IMI China (Jiaxing) Receives Five Invention Patent Awards
03/13/2024 | IMIIntegrated Micro-Electronics, Inc. (IMI), China (Jiaxing) Test and Systems Development (TSD) team recently received five National Invention Patent awards from the China National Intellectual Property Administration (CNIPA).