Dell’Oro Group: PON Subscriber Base on the Rise

More than 700,000 subscribers purchased PON services during the second quarter of 2006 – the largest ever in a single quarter driving more sales of PON customer premise equipment, or optical networking terminals (ONT), according to a newly published report by Dell'Oro Group. The report also indicated a slow down of port shipments of PON equipment for service provider networks, namely optical line terminals (OLT).

“Service providers took a temporary pause purchasing OLTs in the first half of this year as they waited for subscribers to catch up with capacity installed during the recent PON infrastructure buildout,” said Tam Dell'Oro, president and founder of Dell'Oro Group. “But, we are now seeing a growing number of Internet users, especially in Japan and parts of North America, signing up for high-speed PON service. These new subscribers are driving sales of ONTs and consuming excess network capacity, which should result in service providers resuming their purchases of OLTs in upcoming quarters,” Dell'Oro added.

The report showed Sumitomo Corp. and Mitsubishi are the leading suppliers of PON equipment in Japan, and Tellabs and Calix are the leading suppliers in North America.

Dell’Oro Group www.delloro.com

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