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Decline in Network Infrastructure Equipment

Dell'Oro Group announced that it forecasts the combined worldwide sales for access network infrastructure equipment including Cable, DSL and PON access concentrators will decrease almost 15 percent in 2009 to $4.0 billion.

Their latest market study indicates that this decrease is primarily due to declining subscriber additions and a weak global economy that will slow operator access network upgrade plans.

The report forecasts access concentrator shipment growth for Cable, PON, and VDSL in 2010 and to continue each year through 2013, the duration of the forecast period.

Meanwhile, the trend towards higher-speed networks is expected to result in sharp yearly declines in revenue for slower-speed ADSL infrastructure equipment.

"The weakening global economic situation has caused us to lower our forecast for most segments relative to our July 2008 forecast," said Tam Dell'Oro, Founder of Dell'Oro Group.

"This is especially true for 2009, but there are also implications throughout our forecast horizon even though an economic recovery is expected by 2010. We believe that operators will not change their network upgrade strategies, although we expect them to be more cautious with expenditures which likely result in slower, success-based deployments, added Dell'Oro.

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