Despite sharply lower DSL subscriber additions in Q2, port shipments for DSL Access Concentrators grew 17 percent sequentially to a level only surpassed in the second quarter of last year, according to a newly published report by Dell’Oro Group.
“On the surface there appears to be a disconnect between the higher port shipments and lower subscriber additions,” said Tam Dell’Oro, President of Dell’Oro Group. “But further analysis indicates that much of the growth was driven by shipments to China where the government mandated limited network growth in the third quarter due to the Olympics. This resulted in 50 percent higher sequential port shipments to China in the second quarter where advanced buying occurred. We believe a correction is likely in the second half of the year driven by limited shipments to China in the third quarter and lower demand in established regions resulting from slowing subscriber additions,” Dell’Oro added.
The report also shows that the three companies accounting for most shipments to China were also the market leaders. Alcatel-Lucent remains in the top spot followed by Chinese manufacturers Huawei and ZTE.http://www.DellOro.com
