REPORT HIGHLIGHTS

Lead Analyst:
Jeff Heynen
Directing Analyst, Broadband and Video
Infonetics Research
+1 (408) 583-3359
jeff.heynen@infonetics.com
http://twitter.com/jeffheynen

Infonetics Research: PON equipment tops $2 billion for

first time; Huawei takes lead in broadband aggregation
Campbell, CALIFORNIA, March 16, 2010—Market research firm Infonetics Research
(http://twitter.com/infonetics) released the fourth quarter (4Q09) editions of its PON and FTTH
Equipment and Subscribers and Broadband Aggregation Hardware and Subscribers market size,
market share, and forecast reports.

ANALYST NOTE
“Another spike in the Chinese FTTB market continued to drive growth in both EPON and MSAP
revenue, as the major Chinese operators look to pass nearly 25 million homes this year with a
combination of ADSL and Fast Ethernet connections via MSAPs, which are being fed by EPON
links for network-side access. Every region saw an incremental increase in DSL port shipments
and revenue this quarter, though Asia Pacific was by far the biggest beneficiary, seeing a
US$100 million sequential revenue jump. Meanwhile, GPON deployments also shot up this
quarter, thanks to a major increase in GPON shipments to China Mobile and China Telecom, as
well as continued bulk OLT and ONT shipments to BSNL as part of their 700,000-line GPON
buildout,” notes Jeff Heynen, directing analyst for broadband and video at Infonetics Research.

PON AND FTTH MARKET HIGHLIGHTS

• Worldwide passive optical network

(PON) equipment revenue jumped
26% sequentially in 4Q09, driven by
increased spending on Ethernet PON
(EPON) equipment in China
• For the 2009 year, worldwide PON
equipment revenue hit $2.18 billion,
up 35% from 2008, and is forecast by
Infonetics Research to more than
double by 2014
• GPON deployments shot up in 4Q09
as a result of major increases in
shipments to China Mobile, China
Telecom, and BSNL
• Tier 3 operators and municipalities in the US, utilizing Broadband Stimulus funds, will help
power the Ethernet fiber-to-the-home (FTTH) market in the coming year, especially after
Google's announcement that it will be working with munis to deploy a fiber network capable
of delivering 1G of bandwidth to subscribers

© 2010 Infonetics Research, Inc. page 1 of 2

900 East Hamilton Avenue • Suite 230 • Campbell • California • 95008-0664 • t 408.583.0011 • f 408.583.0031
www.infonetics.com • Silicon Valley, CA • Boston, MA • London, UK
• Ethernet FTTH and PON FTTH subscribers are forecast by Infonetics to top 100 million
worldwide by 2014

BROADBAND AGGREGATION HARDWARE MARKET HIGHLIGHTS

• Chinese telecom operators were the

catalysts for growth in the broadband
aggregation hardware market in 4Q09
as well, helping drive DSLAM, NGDLC,
and MSAP vendor revenue up 14% to
over $1 billion
• Driven largely by the growth in MSAP
deployments in China, worldwide
broadband aggregation DSL ports
increased 11% to 92 million in 2009
from 2008, but because of the lower
cost of the ADSL ports used in FTTB
configurations, revenue actually
decreased 15% to $3.7 billion
• Based mainly on strong MSAP sales,
Huawei and ZTE posted large enough gains in broadband aggregation hardware revenue
share over the last 5 years to take the #1 and #2 spots, respectively, for the first time in 2009
• Alcatel-Lucent maintains its lead in worldwide DSLAM revenue share

REPORT SYNOPSES
Infonetics’ quarterly PON report provides worldwide and regional market size, market share,
analysis, and forecasts for BPON, EPON, GPON, and WDM-PON equipment, FTTH and FTTB
OLTs and ONTs, FTTH equipment, ONT gateways, Ethernet FTTH CPE and service provider
equipment, and PON and Ethernet ports and subscribers.

Companies tracked include Alcatel-Lucent, Allied Telesis, Alloptic, Calix, Cisco, Dasan, ECI,
Ericsson, FiberHome, Fujitsu, Genexis, Hitachi, Huawei, LG Nortel, Mitsubishi, Motorola, NEC,
Nokia Siemens, Occam, Oki, PacketFront, Samsung, Sagem, Salira, Sumitomo, Telco Systems,
Tellabs, Tilgin, Ubiquoss, Zhone, ZTE, and others.

Infonetics’ quarterly broadband hardware report provides worldwide and regional market size,
market share, analysis, and forecasts through 2013, and includes customizable pivot tables. The
report tracks MSAPs, next gen DLCs, ATM and IP DSLAMs, ports (ADSL, G.SHDSL, VDSL,
PON OLT, Ethernet OLT, and DS0s), and DSL subscribers (ADSL/ADSL2+, VDSL/VDSL2, and
G.SHDSL).

Companies tracked include ADTRAN, Alcatel-Lucent, Allied Telesis, Calix, Ciena, Corecess,
Dasan, ECI, Enablence, Ericsson, Fujitsu, Huawei, Iskratel, Millinet, Motorola, NEC, Nokia
Siemens, Occam, Samsung, Sumitomo, Tellabs, UTStarcom, Woojyun, Zhone, ZTE, ZyXEL, and
others.

MORE INFORMATION
Log on or join: http://www.infonetics.com/login
From the portal, go to RESEARCH, then BROADBAND.

© 2010 Infonetics Research, Inc. page 2 of 2

900 East Hamilton Avenue • Suite 230 • Campbell • California • 95008-0664 • t 408.583.0011 • f 408.583.0031
www.infonetics.com • Silicon Valley, CA • Boston, MA • London, UK
SALES
• Larry Howard, Vice President: larry@infonetics.com, +1 (408) 583-3335
• Scott Coyne, Senior Account Director, Eastern North America, Europe, Middle East:
scott@infonetics.com, +1 408.583.3395

RELATED RESEARCH
• Cable broadband equipment up 22% in 4Q09; ARRIS takes CMTS lead from Cisco in 2009
• PON equipment market to top $2 billion for first time in 2009, led by China network rollouts
• Residential voice, video and data services to hit $300 billion by 2013
• DSL equipment market up 9% in 2Q09; Huawei and ZTE neck and neck
• DSL and cable broadband CPE market up in 2Q, but slow subscriber growth clouds future

COMING UP
See the Broadband area on Infonetics’ service portal for details (http://www.infonetics.com/login):
• Residential Gateways Deployment Strategies: Service Provider Survey
• PON Equipment in Asia Pacific Report
• 10G/40G/100G Networking Ports Biannual Report
• Total Broadband Equipment, CPE, and Subscribers Pivot Quarterly Report
• Residential Voice, Video, and Data Services: North America Biannual Report

Infonetics Research is an international market research and consulting firm serving the
communications industry since 1990. A leader in defining and tracking emerging and established
technologies in all world regions, Infonetics helps clients plan, strategize, and compete more
effectively.

© 2010 Infonetics Research, Inc. page 3 of 2

900 East Hamilton Avenue • Suite 230 • Campbell • California • 95008-0664 • t 408.583.0011 • f 408.583.0031
www.infonetics.com • Silicon Valley, CA • Boston, MA • London, UK