Huawei expands lead in broadband CPE market, says Infonetics

Huawei broke further away from the broadband CPE pack in Q1 2013 as revenues rose 26 percent, according to a new Infonetics report. Much of Huawei's broadband CPE revenue came from its service provider customers in China, Singapore and Malaysia, where it has become the primary supplier of GPON ONTs and ADSL CPE.

One of the notable shifts in the rankings was that ZTE dropped to fourth place, while Technicolor and Arris (Nasdaq: ARRS) took the second and third spots, respectively.

Infonetics broadband CPE vendors 2013

Overall, the global broadband CPE market saw a strong showing. Driven by sales of FTTH and cable CPE, the market segment grew 6 percent sequentially and 17 percent year-over-year to $2.2 billion.

"Better than expected sales of higher-end cable CPE, including headed and headless video gateways being sold in North America and Europe, helped the broadband CPE market put up another strong quarter," said Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics.

Despite the expected annual decline in DSL CPE sales, VDSL-based CPE grew 30 percent year-over-year in North America and EMEA.

For service providers that have a large base of copper plant, VDSL2 has become a viable near-term option to deliver higher speed services and video.

Three major telcos, including AT&T (NYSE: T), Deutsche Telekom and Telecom Italia (NYSE: TI), have outlined large-scale build out plans that will continue through the year 2016. AT&T's Project VIP will extend U-Verse FTTN coverage by 8.5 million homes by 2015, while Deutsche Telekom will increase VDSL coverage to 65 percent by 2016. Telecom Italia will deploy fiber to the cabinet to 6.1 million homes in 100 cities by the end of 2014.

"Operators across multiple verticals are in the middle of a long-term transition to higher-speed broadband technologies like FTTH, DOCSIS 3.0 and VDSL2 to keep up with subscriber demand for multiscreen video."

For more:
- see the release

Special report: Bonding telcos' love affair with copper through VDSL2

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