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DSL Sales Rocket To $6.4 Billion: Report

Global sales of digital subscriber line (DSL) aggregation hardware rose substantially last year as providers built the infrastructure to deliver advanced multimedia and triple-play services.

According to Infonetics Research, worldwide DSL aggregation shipments were up 38% in 2005, rising from 59.8 million in 2004 to 82.3 million ports last year. In the last quarter alone, port shipments grew 9%. At the same time, revenues increased 23% between 2004 and 2005, from $5.19 billion to $6.37 billion.

Infonetics analyst Jeff Heynen says that the introduction of new services has particularly stimulated providers' interest in IP-based DSL access multiplexers (DSLAMs). "We are seeing tremendous growth in the deployment of IP-based DSLAMs, with total revenue up 25% for the fourth quarter and up 124% for 2005," Heynen said in a statement. "Worldwide, service providers are rolling out high-bandwidth services, including IPTV and video on demand, which require the flexibility and throughput of IP-based platforms."

Alcatel remains the DSL aggregation hardware market leader in both revenues and port shipments and is the leader in IP DSLAM revenues. Huawei, which trails Alcatel in both DSL aggregation revenues and shipments, leads in IP DSLAM sales, and is second to Alcatel in revenues.