Service providers continue to transition their last mile networks to support higher speed bandwidth services using a mix of VDSL2 and PON equipment, a trend that Dell'Oro says drove up the worldwide broadband access market to $3 billion in the first quarter of 2015.
One particular region where PON and VDSL2 sales rose during the quarter was EMEA (Europe, the Middle East and Africa).
"EMEA now accounts for approximately two thirds of worldwide VDSL port shipments, its highest proportion since we began tracking this market," said Alam Tamboli, senior analyst at Dell'Oro Group, in a release. "We expect this strong performance to continue over the foreseeable future due to operators' need to increase bandwidth to remain competitive and handle increasing Internet traffic."
Tamboli added that while PON offers much higher bandwidth over a fiber-based connection, EMEA providers, particularly those in Europe, "will forego PON deployments in favor of VDSL due to the relatively higher cost to deploy."
Regardless of the European carriers' preference for VDSL2, Dell'Oro said that the PON market continued to drive overall demand in the broadband access, with revenues rising for the second quarter in a row.
- see the release
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