Week in research: VDSL rules in Europe; Carrier IP telephony revenues fall to $1.4B

Copper rules in EU: What will the European high-speed broadband landscape look like in 2020? Mostly copper, according to Point Topic, which said that despite the push for FTTP, most providers will rely on VDSL to meet Europe's broadband goals quickly with minimal cost. In fact, VDSL coverage increased 5.6 percent in 2012 to pass 24.9 percent of households on the continent. Likewise, DOCSIS 3.0 network coverage grew 2.7 percent in the same period and covers 39.3 percent of homes. By comparison, FTTP saw 2.4 percent growth and covers just 12.3 percent of EU homes. "We forecast that VDSL will reach 73% of European homes by 2020, while Docsis 3 cable will cover 45% and FTTP only 16%," said Tim Johnson, lead author of the report. Release

Point Topic superfast broadband Europe

SBCs becoming revenue superstars: Sales of IMS core, session border controller (SBC) and voice applications server systems grew 26 percent between Q2 2012 and Q2 2013, Dell'Oro Group reports. However, carrier IP telephony market revenues--including circuit switched and VoIP service devices--dropped 12 percent in the same period, to $1.4 billion worldwide. But it's SBCs that are the big story in this segment. "Wireless network construction activities are now a major driver to Session Border Controller sales," said Chris DePuy, vice president of carrier IP telephony research at Dell'Oro. "As wireless projects have emerged from the planning stage and have begun generating vendor revenue, it is clear that service providers have been broadening their supplier relationships for critical carrier voice equipment such as the SBC." Release

Core router sales to pick up: Carrier routing and switching worldwide saw a 14 percent sequential increase and a 5 percent year-over-year increase, and is now a $3 billion market, according to ACG Research. Cisco (Nasdaq: CSCO), as usual, topped the list of vendors with $1.52 billion in revenues, followed by Alcatel-Lucent (NYSE: ALU) and Juniper Networks (NYSE: JNPR). Core routing remains soft as carriers moving toward 100G stay cautious about spending, with revenues at $590 million, down 6.6 percent compared to the same period last year. But sequentially, core routing is up 7.4 percent. "Core has been in a soft cycle but we anticipate growth as the delays in upgrades are now starting to be addressed," said  Ray Mota, ACG Research founder. Post

Carrier routing and switching leaders
Source: ACG Research