(www.gawkwire.com) – IHS (NYSE: IHS) raised its outlook for the broadband customer premises equipment (CPE) market, which includes DSL, cable, fiber-to-the-home (FTTH), residential gateways and mobile broadband CPE. In a September report, the firm noted it increased its 2019 worldwide broadband CPE forecast by 8 percent, to US$12.4 billion.
“The primary source for raising our global broadband CPE forecast is the massive investment currently ongoing in China. Despite reported economic headwinds, the Chinese government continues to subsidize telco investments in fiber infrastructure to expand accessibility and throughput. The result is heavy spending on GPON and EPON ONTs,” said Jeff Heynen, research director for broadband access and pay TV at IHS.
“At the same time, the shift from fiber-to-the-building (FTTB) to FTTH architecture is well underway in China. A primary reason for this architectural shift is that FTTB plus ADSL take-rates at China Telecom have been disappointing; consumers aren’t interested in a connection that offers only a marginal improvement over what they already have. If they are to subscribe to a home broadband service, it needs to provide a minimum of 8MB to 10MB speeds,” Heynen said.
BROADBAND CPE MARKET HIGHLIGHTS
- The big story this quarter is FTTH optical network terminals (ONTs) in China, unit shipments of which more than doubled year-over-year, from 9.8 million to over 20 million from 2Q14 to 2Q15
- In 2Q15, the global broadband CPE market grew 5 percent from the previous quarter, to $2.9 billion; unit shipments grew 11 percent, to 61 million
- Worldwide total broadband CPE revenue is up 7 percent from the year-ago second quarter, when it was just under $2.7 billion
- Quarter-over-quarter, from 1Q15 to 2Q15:
- DSL CPE unit shipments were down 1 percent to 23 million, with VDSL IADs posting the highest growth (+11 percent)
- Cable CPE units were up 1 percent to 11.6 million (90% of which were WiFi-enabled), with DOCSIS 3.0 modems posting the highest growth (+13 percent)
- Fixed LTE CPE shipments grew 4 percent
ANALYST CONFERENCE CALL FOR CLIENTS
Clients: Log in to view analyst Jeff Heynen’s broadband CPE market recap and outlook, live Sept. 24 at 11:00 AM ET or on-demand: www.infonetics.com/cgp/login.asp?id=941.
BROADBAND CPE REPORT SYNOPSIS
The quarterly IHS Infonetics PON, FTTH, Cable, DSL, and Wireless Broadband CPE market research report tracks DSL, cable and FTTH CPE; mobile broadband routers; and residential gateways. The research service provides worldwide and regional market size, vendor market share, forecasts through 2019, analysis and trends. Companies tracked include Alcatel-Lucent, Arris, AVM, Cisco, Comtrend, D-Link, Dasan Networks, Fiberhome, Hitron, Huawei, Mitsubishi, Netgear, OF Networks, Pace, Sagemcom, SMC Networks, Sumitomo, Telsey, Technicolor, TP-Link, Ubee Interactive, Zhone, ZTE, ZyXel, and others. To purchase the report, please visit www.infonetics.com/contact.asp.
Join analyst Jeff Heynen Sept. 29 at 11:00 AM ET for Delivering Cable Services in the Cloud Era, a free, live event that examines how virtualization will impact the MSO network and takes a look at key residential and commercial offerings enabled by NFV and SDN. Register here.
- China Sets Record in Broadband Equipment Market with Billion-Dollar PON Quarter
- Broadband CPE Up 3% from a Year Ago in 1Q15, G.fast and VDSL Replacing ADSL
- Biggest Cable Operator Trend: DOCSIS Deployments, Shift to Remote Access
- HFC Optical Nodes to Double by 2019
- Cable Broadband Equipment Market Off to Mixed Start in 2015
- 14 Percent Increase for Broadband Equipment Market from a Year Ago
IHS INFONETICS WEBINARS (https://www.infonetics.com/infonetics-events)
- SDN & NFV: Lessons Learned from Lab to Commercial Service (Sept. 24: Register)
- Delivering Cable Services in the Cloud Era (Sept. 29: Register)
- Leveraging NFV for Carrier WiFi Services (Watch now)
- Service Provider Experiences with NFV: The Good, the Bad, the Ugly (Watch now)
TO PURCHASE RESEARCH, CONTACT:
IHS Sales: +1 844-301-7334
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.