Report: PON Gear Sales to Hit $3 Billion by 2009

Thanks to ambitious telco FTTH deployments, worldwide EPON, GPON and BPON equipment sales are expected to surge to $3 billion in 2009, up 431 percent from $565 million in 2005, according to a report from Infonetics Research Inc.

After more than doubling between 2004 and 2005, the number of worldwide PON subscribers are also expected to continue to swell from 4.1 million in 2005 to 38 million in 2009, according to the research and consulting firm.

“The big trend we're seeing with PON is that service providers are really committed to FTTH, as reflected by the recent increase in longer-term contracts being initiated by larger RBOCs and PTTs,” said Jeff Heynen, an analyst at Infonetics.

Broadband customers are consuming increasing capacity, whether they are telcos or residential users of emerging services.

“Video via RF overlay and IPTV, gaming, and other high bandwidth applications continue to drive demand for PON and Ethernet FTTH equipment all over the world,” Heynen said.

Infonetics' report tracks BPON, EPON, and GPON OLT and ONT equipment used in FTTH and FTTB applications; Ethernet switches used in FTTH applications; EADs; and PON, FTTH and IPTV subscribers. Key findings from the Infonetics report:

• In 2005, 2.2 million PON ports were shipped worldwide. That number is forecast to jump to 13.4 million by 2009.

• The burgeoning Ethernet Access Device (EAD) segment more than quadrupled between 2004 and 2005 and is forecast to jump from $91 million in 2005 to almost $685 million in 2009.

• PON and Ethernet FTTH subscribers topped 4 million worldwide in 2005 and will grow to more than 38 million in 2009, 85 percent of which will be PON-based, 15 percent Ethernet-based.

• Fifty-eight percent of worldwide PON revenue came from Asia-Pacific in 2005, but by 2009, EMEA and CALA will gain share, while Asia-Pacific's share will drop to 46 percent and North America loses 1 percent.

Infonetics Research Inc. www.infoentics.com

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