New Report from CIR Says That FTTx Modules and Components Market to Surpass $1.5 Billion in 2011

August 17, 2006

Charlottesville, VA: According to a newly released report from CIR, a leading industry analyst firm based here, the market for modules and components used in FTTx networks will grow from an estimated $629 million ($US) this year to over $1.5 billion ($US) in 2011. The report titled, “FTTx: The Opportunities for Components Suppliers” is the next in a series of reports from the firm analyzing and forecasting modules and components markets. Additional details about the report can be found here. Members of the press may receive a full Executive Summary upon request.

Market Breakouts:

The FTTx business has reemerged in the past year as carriers expand their roll outs of fiber-based networks resulting in new opportunities for the components sector says CIR’s new report. On the active components side of the business, which includes products such as transceivers, transmitters and receivers, the market is projected to reach close to $800 million in revenues by 2011. CIR believes the opportunity to be significant enough that larger manufacturers will likely be drawn to this space which currently lacks dominant suppliers. On the passives side of the business, PON splitters, couplers and amplifiers are projected to grow to a total $438 million in 2011. For the electronics used in PON, CIR projects revenues of almost $300 million in 2011.

CIR’s report also noted the following:

• The FTTx components market will remain highly price sensitive. Firms with proprietary manufacturing technologies that result in high yields and those that deploy optical integration will remain competitive while maintaining margins.

• New markets will soon begin to emerge for novel components that cater to the needs of WDM PONs and PONs operating at both 2.5 Gbps and 10 Gbps.

• FTTx presents economies of scale for component manufacturers with the resources. Ultimately the smaller firms that are currently visible in the market will likely be bought up or left to niche status.

• For electronic chip firms focused on this space there will be growing opportunities to supply high layer chips that better enable new services such as VoIP and IP TV, as well as additional security.

• FTTx subscriber growth over the forecast period is projected to be robust with 125 million new subscribers projected over the forecast period.

About the Report:

This new report from CIR forecasts and analyzes the markets for optical components used in emerging Fiber-to-the-X networks. Products covered in this report include OLT and ONU transceivers, splitters, amplifiers, couplers, and Layer 1 and MAC electronic devices. Components for all the main types of FTTx networks including BPON, GPON, EPON, GEPON and point-to-point networks are covered. In addition, the report projects the components requirements of emerging FTTx networks including WPONs, 10 Gbps PONs and WDM overlay networks. The report includes volume and value forecasts for the products listed above broken out by type of network.

About CIR:

CIR provides detailed market analysis and forecasting of the trends, technologies and opportunities in the telecom and data communications components and modules market. Since it entered the market in 1979, CIR has produced dozens of reports that have tracked the cutting edge of the communications sector with a special focus on emerging technologies and high bandwidth networking. Our focus is on supplying our customers with the most comprehensive and detailed market data available in the sectors that we follow.

Contact:

Robert Nolan
CIR
(804) 360-2967
info@cir-inc.com