Gartner on DSL shipments

Worldwide digital subscriber line access multiplexer (DSLAM) port shipments reached 12.4 mil units, a 182% increase from the same period a year ago and a 32% rise quarter over quarter. Worldwide customer premise equipment (CPE) shipments increased 135.5% year over year and 25.8% quarter over quarter to 10.2 mil units in the third quarter of 2003.

“The DSLAM market continues to be dominated by Alcatel, with its diverse customer base, and Huawei, riding the Chinese broadband wave. The second tier is more volatile, and most noteworthy this quarter was the strong performance of the Japanese vendors,” said Jouni Forsman, principal analyst for Gartner’s worldwide Telecommunications and Networking group. “In the DSL CPE market, established original equipment manufacturers (OEMs) remain challenged by new Taiwanese entrants, many of whom are shipping directly to service providers under service provider brand names.”

Alcatel was the leader in the worldwide DSLAM market in the third quarter of 2003 with 34.4% of port shipments (see Table 1), followed by Huawei with 17.7% market share. Huawei experienced the strongest shipment increase during the quarter, compared with the same period in 2002. The DSLAM market is already very concentrated, with the top two vendors making up 52.1% of the market.

Preliminary Top Worldwide xDSL CO Vendors' Port Shipments
Estimates for 3Q03
(Thousands of Units)
---------------------------------------------------------------------
                                                 
                           3Q03      3Q03      3Q02      3Q02  
                           Port     Market     Port     Market  Growth
Company                  Shipments  Share(%)  Shipments  Share(%)  (%)
----------------------------------------------------------------------
Alcatel                   4,283.2    34.4     1,531.1    34.7    179.7
Huawei                    2,200.0    17.7       160.0     3.6  1,275.0
NEC                       1,089.0     8.8       440.0    10.0    147.5
Sumitomo                    826.0     6.6       306.5     6.9    169.5
Siemens                     677.1     5.4       132.3     3.0    411.8
Lucent Technologies         677.1     5.4       222.6     5.0    204.2
Others                    2,690.1    21.6     1,619.5    36.7     66.1
Total                    12,442.5   100.0     4,412.0   100.0    182.0
----------------------------------------------------------------------
Source: Gartner Dataquest (November 2003)

Preliminary Top Worldwide xDSL CPE Vendors' Port Shipments
Estimates for 2Q03
(Thousands)
----------------------------------------------------------------------
                           3Q03      3Q03       3Q02     3Q02 
                           Port     Market      Port    Market  Growth
Company                 Shipments  Share(%)  Shipments  Share(%)  (%)
----------------------------------------------------------------------
Siemens                   1,310.9    12.8       877.2    20.2     49.4
NEC                         938.0     9.2       243.0     5.6    286.0
Thomson                     874.3     8.6       605.7    14.0     44.3
Westell                     626.0     6.1       356.0     8.2     75.8
ZyXel                       595.5     5.8       362.7     8.4     64.1
Others                    5,857.8    57.4     1,888.0    43.6    210.3
Total                    10,202.5   100.0     4,332.6   100.0    135.5
----------------------------------------------------------------------
Source: Gartner Dataquest (November 2003)