N. American DSL Market Overshadowed By International Declines

Asian DSL market still dominant in 3Q09; downstream CMTS ports cross 100,000 mark- Ovum today announced its preliminary quarterly results for global 3Q09 DSL and CMTS port shipments.

Boston, MA – November 10, 2009 – Asian DSL market still dominant in 3Q09; downstream CMTS ports cross 100,000 mark- Ovum today announced its preliminary quarterly results for global 3Q09 DSL and CMTS port shipments.

“Double-digit declines in international DSL markets outweighed North American growth (especially VDSL2) in 3Q09.The continuing impact of recessionary conditions worldwide exacerbated the seasonal third-quarter dip” said Ovum Analyst Kamalini Ganguly. “However, continuing DOCSIS 3.0 rollouts and demand for downstream bandwidth contributed to strong downstream shipment growth in all CMTS markets, particularly outside North America.”

3Q09 Highlights

• DSLAM shipments: down 10% and 3% versus 2Q09 and 3Q08, respectively

• CMTS shipments: up 11% versus 2Q09 and down 12% versus 3Q08

Huawei was the top ranked vendor in the 3Q09 DSL market but Alcatel-Lucent remained in first place on a rolling 4-quarter (4Q) volume basis with 29.8% share, followed by Huawei (28.6%), ZTE (19.6%), Nokia Siemens Networks (4.6%) and Ericsson (4.3%).

Cisco regained the lead in the CMTS market with 46% rolling 4Q share, followed by Arris with 36% and Motorola with 15% share.

Other Highlights

• Arris extended its current quarter leadership of the North American CMTS market

• North American CMTS port shipments dropped to 49% of the total of 172,183 ports shipped from 59% in 2Q09

• Downstream CMTS port shipments crossed the 100,000 mark for the first time representing an all-time high of 60% of all shipments

• Asian domination of the DSL market continues – 54% of 17.6 million ports shipped in 3Q09

• Strategic upgrades like that of AT&T’s U-verse and Qwest’s FTTN rollouts helped to lift North American DSL shipments amidst the downturn.

For further information:

Details of the 3Q09 results and additional analysis are being published by Ovum’s Broadband Network Strategies team, which provides consistent quarterly analysis and detailed annual forecasts of equipment sales for North American, European, and Asian network operators.

For additional details or to speak with Kamalini Ganguly about this research, please contact Alan Sott, Marketing Manager at alan.sott@ovum.com, 570-687-9315, or a member of our global PR team listed below.

About Ovum:

Ovum's primary activity is providing value-added advisory services and consulting to retain and project clients. The company acts as a well-respected and trusted source of industry data, knowledge and expertise on the commercial impact of technology, regulatory and market changes. Ovum engages in continuous research and industry analysis to determine market dynamics in its specialist sectors.

Ovum has developed long-standing relationships with many of its corporate clients, which include major international blue-chip companies such as Alcatel-Lucent, AT&T, BT, Cable & Wireless, Cisco Systems, Deutsche Telekom, Fujitsu, HP, IBM, Microsoft, Telstra and Vodafone.

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