OTT video drives broadband equipment investment to new highs

Michelle Clancy | 05-03-2014

The broadband access aggregation equipment market defined as PON, fibre-to-the-home (FTTH) and DSL aggregation gear grew 4.6% sequentially in the fourth quarter of 2013, bringing the market size to $1.95 billion.

According to Infonetics Research, thirst for better access to next-generation video sources is a big driver for the market.

"2013 ended up being a strong year for fixed broadband spending, driven by the continued growth of GPON and vectoring-capable VDSL gear," said Jeff Heynen, principal analyst for broadband access and pay-TV at Infonetics. "Competition, over-the-top (OTT) and multiscreen video, and national broadband goals remain the primary drivers for fixed broadband investment."

The firm also found that for the full year 2013, worldwide broadband aggregation equipment revenue totalled $6.96 billion, a 1.6% increase over 2012.

The quarter capped a record year for GPON in China, with revenue increasing 64% from the previous year as China Unicom and China Telecom continued deployments of GPON-based FTTH.

Meanwhile, VDSL shipments surpassed ADSL for the first time in 2013 and now make up over half of all DSL ports shipped, though this was not enough to lift overall DSL aggregation market on a year-over-year basis.

The top three overall broadband aggregation revenue leaders are once again Huawei, Alcatel-Lucent and ZTE.