Q1 was record for DSL

Optical Networking This newsletter is sponsored by Nokia Make the most of your mobile gear Download our Free Executive Guide and learn how Network IT professionals are getting the most out of their mobile devices and improving mobile security. You'll also get the scoop on upcoming mobile tools and technologies and how they may impact your enterprise. Network World's Optical Networking Newsletter, 05/30/07 Q1 was record for DSL By Jim Duffy Global shipments of DSL equipment in the first quarter increased 5% sequentially to a record 25 million ports, according to market research firm Dittberner. The strong growth was mainly due to: * Over 12 million new DSL subscribers worldwide, including 4.1 million in China; Network World LAN/WAN Buyer's Guide Find the right LAN/WAN products for your enterprise - fast. Our extensive database of detailed product information will help you quickly pinpoint what you need. With the side-by-side comparison tool you can evaluate product features and make the best decision for your enterprise. Click here to go to the Buyer's Guide now. * A large increase in Fiber-to-the-Building/VDSL subscribers in Japan; * And the movement of 2 million ports in Western Europe to unbundled loops, which gave a temporary boost in shipments as incumbents retired the replaced equipment. North American shipments declined for the third quarter in a row and will continue to decline due to the slowdown in AT&T’s buildout, Verizon’s shift to Fiber-to-the-Home and the absence of alternative service providers, according to Dittberner. Alcatel-Lucent, the market leading vendor, saw its share drop from 36% in the fourth quarter of 2006 to 29% in the first quarter of 2007. And for the first time ever, the combined shipments of the second and third place vendors – Huawei and ZTE -- exceeded Alcatel-Lucent’s, Dittberner found. Huawei, ZTE and Siemens all reported record shipments, the firm said. The top three suppliers all reported strong shipments into China and to Western Europe’s alternative service providers; the only vendor to record growth in North America was Adtran, the firm found. Dittberner expects the growth of DSL on unbundled loops to continue at the expense of Western Europe’s incumbents’ wholesale DSL business. This should result in Huawei and ZTE increasing market share, the firm says. The growth in IP DSLAMs accelerated during the quarter and now comprises 72% of all DSLAMs shipped, the firm says. Huawei remained the leader with 28% of the market share. Alcatel-Lucent, ZTE, Siemens and ZyXel round out the top 5 suppliers. The number of IP DSLAMs shipped grew by 16% in the first quarter, while the number of ATM DSLAMs declined 13%. IP DSLAMs shipped have become the major driver in the growth of the edge router and Carrier Ethernet markets, Dittberner notes. One main driver of IP DSLAM growth, VDSL and VDSL2, grew to 2 million ports shipped, according to the firm. ZyXel remained the market leader in this segment with a 40% share, Dittberner found. Regional growth varied in the quarter. Even with the strong subscriber growth in China and the alternative service provider buildouts of Western Europe, Asia-Pacific and Europe/Middle East/Africa grew at or slightly less than the global market, Dittberner found. Shipments to Central and Latin America were up 45% to 2.3 million ports, almost as much as North America. Market consolidation continues and will likely speed up if DSL subscriber growth slows, as the firm expects.   What do you think? Post a comment on this newsletter

TODAY'S MOST-READ STORIES: 1. Novell publishes terms of Microsoft Linux deal 2. Verizon planning iPhone killer 3. Michigan man fined for using free Wi-Fi 4. Switches of the future 5. Are security pros worrying about the right stuff? 6. Cisco routers cause major outage in Japan 7. Microsoft routs BMC's .Net Identity Management 8. Report slams FBI network security 9. Skype worm jumps to ICQ, MSN too 10. Don't sniff at used network gear MOST E-MAILED STORY: Michigan man fined for using free Wi-Fi

Contact the author: Jim Duffy is managing editor of Network World's service provider equipment coverage. He has 18 years of high-tech reporting experience, including over 12 years at Network World. Previously, he was senior editor at Computer Systems News and associate editor/reporter at Electronic News and MIS Week. He can be reached at jduffy@nww.com. This newsletter is sponsored by Nokia Make the most of your mobile gear Download our Free Executive Guide and learn how Network IT professionals are getting the most out of their mobile devices and improving mobile security. You'll also get the scoop on upcoming mobile tools and technologies and how they may impact your enterprise. ARCHIVE Archive of the Optical Networking Newsletter. BONUS FEATURE IT PRODUCT RESEARCH AT YOUR FINGERTIPS Get detailed information on thousands of products, conduct side-by-side comparisons and read product test and review results with Network World’s IT Buyer’s Guides. Find the best solution faster than ever with over 100 distinct categories across the security, storage, management, wireless, infrastructure and convergence markets. Click here for details. PRINT SUBSCRIPTIONS AVAILABLE You've got the technology snapshot of your choice delivered to your inbox each day. Extend your knowledge with a print subscription to the Network World newsweekly, Apply here today. International subscribers, click here. SUBSCRIPTION SERVICES To subscribe or unsubscribe to any Network World newsletter, change your e-mail address or contact us, click here. This message was sent to: networking.world@gmail.com. Please use this address when modifying your subscription. Advertising information: Write to Associate Publisher Online Susan Cardoza Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 Copyright Network World, Inc., 2007