DSL port shipments up 2% in Q1 2005

Worldwide DSL aggregation hardware DSL port shipments increased 2% to 16.6 mln in Q1 2005 following a 9% increase in Q4 2004 and an 11% increase in Q3 2004, and revenue dropped 2% to $1.4 bln following a 14% increase in Q4 2004, according to Infonetics Research. DSL ports will continue steady annual growth through 2008, while revenue will stay even in 2005, then grow slowly through 2008. Despite carrier capex reductions, money is still being spent on DSL, and DSL subscriber growth continues to be strong. Worldwide DSL subscribers jumped 70% to 98.6 mln between 2003 and 2004 and are expected to grow to over 195 mln in 2008.

In Q1 2005, the EMEA and Asia Pacific regions accounted for 75% (almost 13 mln) of all ports shipped, but the big surprise came from the CALA region, which jumped an amazing 134% between Q4 2004 and Q1 2005 to match North America’s output of 2 mln DSL ports. Alcatel, Huawei, and Siemens are the top 3 leaders in worldwide DSL aggregation hardware DSL port and revenue market share. Alcatel and Huawei have been in the top 2 positions for a year. DSLAMs make up 61% of total DSL aggregation hardware revenue, and next gen DLCs and BLCs comprise 39%. Worldwide ATM DSLAM revenue dropped 7% and ports are flat. Worldwide IP DSLAM revenue jumped 20% and ports jumped 15% from Q4 2004. 37% of total DSL revenue comes from EMEA, 29% from Asia Pacific, 20% from North America, and 14% from CALA.