IHS: Big Spending on GPON in China

Global broadband aggregation equipment revenue (DSL, PON, and Ethernet FTTH) grew 12 percent sequentially in the second quarter of 2015 (2Q15) and 11 percent year-over-year, driven largely by record Gigabit Passive Optical Network (GPON) equipment shipments in China and an increase in very-high-bit-rate DSL (VDSL) deployments, according to newly published research from IHS (Infonetics).

Some highlights:

• China set a record for PON equipment revenue in 2Q15, surpassing $1 billion in a quarter for the first time ever
• Q2 spending on PON equipment globally was up both sequentially and on a year over-year basis, and IHS anticipates increased spending for the full-year 2015 as more operators deploy FTTH services
• The 2Q15 spending environment in North America was very mixed: GPON expenditures were up 1 percent from 2Q14 but down 10 percent from 1Q15, while DSL spending plunged 18 percent from 2Q14 but grew 5 percent from 1Q15
• Due to the tremendous, sustained investment in China, IHS now predicts the worldwide broadband aggregation market will reach $9 billion in 2019

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