Calix (NYSE: CALX), Alcatel-Lucent (NYSE: ALU) and ADTRAN (Nasdaq: ADTN) will continue to benefit from the U.S. Tier 3 service providers that are upgrading their existing copper plant to support VDSL2 or building out fiber to the home (FTTH), says Infonetics.
Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research, said that Tier 3 service providers have made large investments in FTTH "and will continue to expand their fiber availability until they reach their entire subscriber base."
However, he added that like other service providers the move to FTTH will be a migration vs. a flash cut. "The long-term transition to fiber will happen incrementally, with fiber-to-the-node and fiber-to-the-curb deployments using VDSL2 as a critical, strategic tool in the effort to keep up with subscriber and network bandwidth demands," he said.
Next year, 55-75 percent of survey respondents plan to upgrade and expand their networks with 2.5G GPON and Ethernet FTTH. At the same time, the percentage of respondents upgrading their networks with system-level vectored VDSL2 goes from zero in 2013 to 30 percent in 2014.
The ongoing migration to FTTH and VDSL2 has been a key element in driving next-gen access revenues for Calix, Alcatel-Lucent and ADTRAN.
ADTRAN reported that fourth-quarter 2013 broadband access revenues were $88.5 million, while Alcatel-Lucent reported that sales of FTTH and VDSL vectoring equipment drove up its wireline results 2.4 percent year-over-year to $734 million. Finally, Calix reported revenue rose 3 percent year-over-year to $94 million due to strong international sales.
- see the release
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