Highlights from Market Share Report: 1Q13 FTTx, DSL, and CMTS
Fixed access equipment revenues continued to fall in 1Q13, totaling $1.3bn compared to $1.7bn for 4Q12 and $1.8bn for 1Q12. The impact of declining DSL and PON OLT port shipments was not offset by slight increases in CMTS and PON ONT shipments, and lower average selling prices (ASPs) for DSL and PON devices also suppressed revenues. Among the top 10 vendors on a rolling 4-quarter basis, Huawei, Arris, and Alcatel-Lucent gained market share, while ZTE and Mitsubishi lost the most share, as shown in Figure 1. We expect fixed access equipment revenue declines to persist throughout 2013. FTTx network builds are maturing in Japan and Korea and are expanding more evenly in China, thereby limiting OLT shipment growth. Steep ADSL shipment declines are not being offset by increases in VDSL volumes. ONT shipments will remain strong as subscribers are brought onto FTTx networks, particularly in China, but pricing pressure will continue to drive down total PON sales. CMTS shipments remain strong, but on an annual basis revenues are declining. On a positive note, 10G EPON equipment is being shipped by several vendors for deployments in China.