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Video Services Push Telco to Upgrade DSL

Dell'Oro Group announced that it forecasts revenue from build-outs of high-speed VDSL and PON networks will almost double between 2007 to 2012.

During the same timeframe, revenue from slower-speed ADSL equipment is expected to fall by more than 40 percent. The forecast includes revenues from sales of both access concentrators and customer premises equipment.

Their findings from the five-year forecast of the Access market that indicate worldwide sales of Cable, DSL, and PON equipment, will grow from $9.6 billion in 2007 to $9.7 billion in 2008 before gradually falling back to $8.9 billion in 2012.

"New revenue opportunities, primarily video services, is driving many telecom service providers in established regions to plan network upgrades to high-speed VDSL and PON technology," said Tam Dell'Oro, Founder of Dell'OroGroup.

"Manufacturers still have good opportunities to sell ADSL equipment, especially in emerging regions where subscriber growth is strongest. However, we expect that ADSL revenue will fall each year because demand from emerging regions will not be enough to offset lower demand in established regions where broadband saturation is resulting in declining subscriber additions," added Dell'Oro.

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