Gartner Says Worldwide DSL Equipment Market Posted Record Growth in the Third Quarter of 2003.Business Editors STAMFORD, Conn.--(BUSINESS WIRE)--Nov. 21, 2003 Aggressive digital subscriber line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary ) deployments in China and migration to higher speed platforms in Japan propelled the worldwide DSL equipment market to record growth in the third quarter of 2003, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. preliminary results by Gartner, Inc. Worldwide digital subscriber line access multiplexer A Digital Subscriber Line Access Multiplexer (DSLAM) allows telephone lines to make faster connections to the Internet. It is a network device, located near the customer's location, that connects multiple customer Digital Subscriber Lines (DSLs) to a high-speed Internet (DSLAM (DSL Access Multiplexor) A central office (CO) device for ADSL service that intermixes voice traffic and DSL traffic onto a customer's DSL line. It also separates incoming phone and data signals and directs them onto the appropriate carrier's network. See DSL. ) port shipments reached 12.4 million units, a 182 percent increase from the same period a year ago and a 32 percent rise quarter over quarter. Worldwide customer premise equipment (CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment ) shipments increased 135.5 percent year over year and 25.8 percent quarter over quarter to 10.2 million 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 broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). 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 Communicating information, including data, text, pictures, voice and video over long distance. See communications. 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 percent of port shipments (see Table 1), followed by Huawei with 17.7 percent 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 percent of the market.
Table 1
Preliminary Top Worldwide xDSL CO Vendors' Port Shipments
Estimates for 3Q03
(Thousands of Units)
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3Q03 3Q03 3Q02 3Q02
Port Market Port Market Growth
Company Shipments Share(%) Shipments Share(%) (%)
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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
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Source: Gartner Dataquest (November 2003)
Siemens was the No. 1 vendor in the CPE market in the third quarter of 2003, with 12.8 percent of port shipments (see Table 2). NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. jumped into the second position with 9.2 percent market share, while Thomson claimed the third place spot with 8.6 percent of the market.
Table 2
Preliminary Top Worldwide xDSL CPE Vendors' Port Shipments
Estimates for 2Q03
(Thousands)
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3Q03 3Q03 3Q02 3Q02
Port Market Port Market Growth
Company Shipments Share(%) Shipments Share(%) (%)
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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
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Source: Gartner Dataquest (November 2003)
Asia/Pacific showed the strongest regional growth in DLSAM port shipments in the third quarter of 2003, with at least 3 million DSLAM ports, or 25 percent of total port shipments, going to China. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. also registered a slight increase in shipments, as services providers rose to meet the competitive challenge of cable and added DSL subscribers by providing a combination of price cuts and promotional packages. Growth in DSLAM port shipments to Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. also occurred because operators in Argentina, Brazil, Chile, Colombia and Peru increased their DSL deployment in the face of increasing demand. DSLAM port shipments to Europe and the Middle East declined in a seasonally slower third quarter. "Strong demand for DSL equipment will continue for a few more quarters as several carriers enter their mass deployment phase, while others migrate to higher-speed platforms requiring replacements of some older equipment," said Gauri Pavate, principal analyst for Gartner's worldwide Telecommunications and Networking group. "Although port shipments will grow, revenue growth will be slow as ASPs continue to decline in the face of fierce price competition. Vendors will find it challenging to continue rolling out increasingly cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. equipment while maintaining future platform value-added-service capability." A DSLAM is a chassis Pronounced "chah-see," it is a physical structure that holds everything or that everything is attached to. A computer's cabinet is often called the chassis. that contains xDSL line cards. The chassis can be located in a central office (CO) and sits outside of the CO switch. CPE is a unit that sits at the home, business, or end-user location that is receiving xDSL service. Additional information is available in the Gartner Dataquest Alert "Global DSL Equipment Shipments Hit Record in 3Q03." This Alert examines the state of the worldwide DSL equipment industry and looks at developing trends and the performance of the top-tier vendors A vendor of a product that is highly recognized for its brand name. Examples of top-tier hardware vendors are HP, IBM and Apple. . This report can be purchased on Gartner's Web site at www.gartner.com/DisplayDocument?id=415977&ref=g-search. This analysis is provided by Gartner's worldwide Telecommunications and Networking group. This group provides an analysis for the full spectrum of telecom and networking issues. To keep up to date on the latest telecommunications issues, please visit Gartner's Public Network Infrastructure Equipment Focus Area at http://www3.gartner.com/research/focus_areas/asset_48266.jsp. To purchase a report or subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; Gartner programs, call 408-468-8000 or go to www.gartner.com. About Gartner Gartner, Inc. (NYSE NYSE See: New York Stock Exchange : IT and ITB ITB Invitation To Bid ITB In The Beginning ITB Internationale Tourismusbörse (German) ITB In The Business (aka in the business service industry) ITB Intrathecal Baclofen Therapy ) is a research and advisory firm that helps more than 10,000 clients leverage technology to achieve business success. Gartner's businesses are Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Conn., and has more than 3,800 associates, including approximately 1,000 research analysts and consultants, in more than 75 locations worldwide. Revenue for calendar year 2002 totaled $888 million. For more information, visit www.gartner.com. |
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