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Broadband Leaders Invest in Fiber Networks

Fiber optic communication networks are the foundational infrastructure that supports the rapidly advancing Global Networked Economy market leaders. Moreover, one region of the world continues to set the pace.

Passive Optical Network (PON) equipment manufacturers in Asia-Pacific are expected to see a 50 percent jump in revenue overall between 2006 and 2007, and PON sales will continue increasing steadily at least through 2010, driven largely by ongoing EPON deployments in Japan, and by expanding PON network rollouts in Korea, China, and India, according to the latest market study by Infonetics Research.

The report, EPON and GPON Equipment in Asia-Pacific, says the number of PON OLT and ONT ports shipped reached 3.1 million in 2006, and will more than double by 2010.

"We believe the Japanese PON market will reach saturation in late 2008 and service providers there will focus on ramping up subscribers for their EPON networks," said Jeff Heynen, directing analyst at Infonetics Research. "Korea and China are a different story, where FTTH and FTTB networks have only recently begun to ramp up, and these countries won't reach saturation until after 2010."

Highlights from the Infonetics report include:

- In Japan, PON equipment manufacturer revenue will decline from 2007 to 2010, as PON network buildouts slow down and service providers such as NTT, Usen, and other energy companies focus on securing subscribers.

- In the Republic of Korea, PON equipment manufacturer revenue will nearly quadruple between 2006 and 2007, as KT and Hanaro significantly expand their EPON and GPON networks in Seoul and surrounding suburbs.

- In China, PON equipment manufacturer revenue will more than double between 2006 and 2007, as CTC, CNC, and other regional network operators rollout the initial stages of their FTTB and FTTH networks in advance of the 2008 Beijing Olympics.

- Mitsubishi is expected to continue its strong lead in overall PON market share in Japan in 2007, Corecess leads in Republic of Korea, and UTStarcom leads in China.

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