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xDSL Equipment Growth Still Strong
By: MarkJ - 18 August, 2003 (12:58 PM)

The global xDSL equipment market has continued to grow during the second quarter of 2003; yet average vendor revenue has dropped. European and Chinese markets are widely expected to be the next growth flashpoint:

"Cost is clearly the key in the DSL equipment market," Jouni Forsman, principal analyst for Gartnerís telecoms group, said in a statement. "Prices will continue to be challenged. Vendors must continue rolling out increasingly cost-effective equipment, while maintaining future value-added service capability of the platform."

For the third consecutive quarter, DSL gear sales posted record growth. Global sales for DSL access multiplexer (DSLAM) ports reached 9.8 million units, up 81.3 percent from a year ago and 16.5 percent over last quarter. Similarly, shipments for customer premise equipment (CPE) increased 59.5 percent compared with last year and 16.2 percent over the last quarter.

Gartner said Japan and North America registered declines in sales growth. "The regulatory situation in the United States is difficult, and the competitive power of cable is strongly felt. Major incumbents are also looking into fibre as a DSL alternative," the research firm said.


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