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PON Market Shines in the First Quarter of 2009

Mitsubishi, Alcatel-Lucent and Huawei are Top Vendors

Redwood City, Calif. – May 27, 2009 – A newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, indicates that worldwide PON equipment revenues grew 9 percent sequentially in the first quarter of this year, despite a weak global economy. The report shows both GPON and EPON had robust sequential growth.

"It appears the weak economy has yet to have a major impact on existing PON projects as operators continue to hold to their strategy of increasing user bandwidth to create new revenue streams," said Tam Dell'Oro, President of Dell'Oro Group. "PON revenue growth in the first quarter was higher than what we had expected due to rapidly increasing EPON build-outs in China, strong GPON ONT shipments for Verizon's FiOS service, and continued strong EPON demand in Japan," Dell'Oro added.

The report also shows Mitsubishi remained the leader in the overall PON market, benefiting from being the primary EPON supplier to NTT, Japan's largest service provider. Alcatel-Lucent recaptured the number two position with higher GPON ONT shipments to Verizon. Huawei's revenue share nearly doubled from last quarter and they vaulted to the number three spot due to strong EPON shipments to China, as well as higher GPON shipments to customers in Europe and the Middle East.

About the Report

The Dell’Oro Group Access Quarterly Report provides complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, and port/unit shipments for Cable, DSL, and PON equipment. Network infrastructure equipment includes Cable Modem Termination Systems (CMTS), Digital Subscriber Line Access Multiplexers ([DSLAMs] by technology ADSL, G.SHDSL, and VDSL), and PON Optical Line Terminals ([OLTs] by technology BPON, EPON, and GPON). The report also covers Cable and DSL Customer Premises Equipment (CPE) technology and PON Optical Networking Terminals (ONTs). To purchase this report, call Emily Kendall +1.650.622.9400 x223 or email Emily@DellOro.com.

About Dell'Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enable component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.

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