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Broadband Multi-Service Access Platforms

According to the Infonetics Research latest "Broadband Aggregation Hardware and Subscribers" report, worldwide DSL port shipments are up only 4 percent in 1Q07 from the previous quarter while overall broadband aggregation hardware revenue is down 13 percent to $1.5 billion.

Reports of strong growth in worldwide DSL subscribers continues, however, indicating fundamental demand for broadband connectivity is still on the rise. Despite a growing percentage of FTTH deployments, fiber-to-the-building deployments using ADSL2+ and VDSL technologies for the subscriber's connection are also increasing significantly.

"Broadband service providers, including DSL operators and cable MSOs, continue to upgrade their networks to support higher bandwidths and more transparent services, such as voice and video, by pushing fiber deeper into the access network. They are also upgrading to higher speed ADSL2+ and VDSL technologies. These trends will push the IP DSLAM and MSAP segments to steady growth annually through at least 2010, despite strong downward pricing pressure," said Jeff Heynen, directing analyst at Infonetics Research.

Infonetics market study highlights include:

- The number of worldwide DSL subscribers are forecast to reach just under 206 million in 2007, a 23 percent increase over 2006, and double-digit annual growth is expected through 2010.

- In 2006, ATM DSLAMs and IP DSLAMs each represented 50 percent of worldwide DSLAM revenue; by the end of 2007, these proportions will shift significantly, with IP DSLAM share increasing to 72 percent.

- IP DSLAM revenue increased 29 percent between 4Q06 and 1Q07 as providers around the world upgrade their networks to deliver new IP services such as VPNs, VoIP, and IPTV.

- Alcatel-Lucent leads with 27 percent revenue share of the worldwide broadband aggregation hardware market, followed by Huawei and ZTE.

- Nearly three quarters of all broadband aggregation hardware revenue hails from EMEA and Asia-Pacific together.

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