CAMPBELL, CA â€”Global spending on DSL and fiber-to-the-home (FTTH) equipment declined 22 percent between the fourth quarter of 2011 and the first quarter of 2012, to $1.8 billion, reports market research firm Infonetics Research in its quarterly report on PON, FTTH and DSL aggregation equipment and subscribers.
â€œIn addition to seeing a first-quarter lull, as we often do in the worldwide broadband aggregation market, there was a big 43 percent drop in Ethernet PON spending in China that drove spending in Asia down a full third this quarter, despite healthy increases in Japan and the rest of Asia Pacific,” explains Jeff Heynen, directing analyst for broadband access and video at Infonetics Research. “The drop in China is due mainly to a shift to FTTH this year and coming off the heels of a record previous quarter. Another, more serious, drag on the overall market was a third consecutive quarter of DSL revenue declines in EMEA, where access network upgrade projects have stalled because of the unstable economic environment.â€
the midst of upgrading their FTTB+VDSL deployments to FTTH and are beginning to replace fully depreciated EPON gear from 2004 and 2005.
absorbing the new capacity they purchased in 4Q11, when record spending was recorded in the region.