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DSL Subscribers To Double By 2009: Report

The worldwide digital subscriber line (DSL) aggregation hardware market is poised for dramatic expansion over the next few years, as service providers try to meet the growing demand for DSL services.

With the DSL subscriber base expected to expand 96% between 2005 and 2009, to reach 245 million worldwide, Infonetics says that revenues from sales of DSL aggregation hardware like DSL access multiplexers (DSLAMs) will balloon 65%, to reach $10.5 billion. In the same period, the firm predicts that shipments will reach 204 million ports.

This will follow on a period of healthy growth last year. DSL aggregation revenues were up 23%, to $6.37 billion last year, and port shipments jumped 38%, from 59.8 million to 82.3 million as service providers deployed new infrastructure to deliver advanced broadband services like Internet television (IPTV). "We are seeing phenomenal growth in IP DSLAMs and broadband loop carriers, both of which will serve as the primary platforms for the delivery of triple-play services in the years to come," Infonetics Research directing analyst Jeff Heynen said in a statement. "Volume shipments of VDSL are beginning in earnest and will drive dramatic growth around the world beginning in 2007."

Alcatel was the DSL aggregation hardware market leader last year, in both revenues and shipments, followed by Huawei. Alcatel also led in revenues from IP DSLAM sales, while Huawei led in port shipments.