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Broadband Aggregation Equipment Passes $2 Billion as Operators 'Binge on Broadband'

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In 2Q14, worldwide broadband aggregation equipment revenue (DSL, PON, and Ethernet FTTH) reached $2.1 billion, growing 17% quarter over quarter and 19% year over year, according to Infonetics Research.

Global spending on all broadband product segments rose in 2Q14 from 1Q14: Ethernet FTTH soared 45%, DSL aggregation climbed 21%, and PON increased 15%.

GPON equipment sales are up 19% sequentially in 2Q14, and up 44% from the same period a year ago, sparked by China, while VDSL ports grew to 6.6 million in 2Q14, as vectoring endeavors in EMEA continued to expand and grow in significance.

"Operators around the world are binging on broadband," says Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research. "Driven by GPON and vectoring, the broadband aggregation market passed the $2 billion mark in the second quarter of 2014, growing by double digits both sequentially and from the year-ago quarter."

Heynen adds: "'Gigabit' has become the mantra of the North American market, resulting in an acceleration of FTTH network investments. Meanwhile in Europe, vectoring VDSL2 deployments continue to ramp quickly."

North America rebounded from a typically slow Q1, and broadband spending is expected to increase later this year when Connect America Fund (CAF) projects get underway

Huawei saw a jump in broadband aggregation gear revenue in 2Q14 in Asia Pacific, driven largely by projects in Southeast Asia.

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