Economic Slowdown Hits GPON Market, Report Finds

A drop in new home construction and delays in FTTH deployment will hinder GPON revenues, but the market will continue to grow, says Light Reading Insider

Nov 21, 2008

NEW YORK, Nov. 21 /PRNewswire/ -- A slowdown in new housing construction and delays in deployment of fiber to the home (FTTH) will adversely affect Gigabit passive optical networking (GPON) product revenues over the next 12 to 18 months, although worldwide demand for GPON products will continue to grow, according to the latest report from Light Reading Insider (, a paid research service of TechWeb's Light Reading (

GPON: Still Waiting for Lift-Off explores and analyzes the GPON equipment sector, including a five-year global market forecast. It provides an overview of recent GPON developments in markets around the world, indicating likely major areas of opportunity. It reviews the impact on the GPON market of current economic and regulatory conditions -- in particular the continuing uncertainty over the business case for all forms of FTTH -- and assesses progress toward interoperability and development of the next generation of PON technologies. The report includes a competitive analysis of GPON offerings from 15 different suppliers.

For a list of companies analyzed in this report, see:

"GPON has emerged as probably the most important of the current technologies for FTTH and FTTB," says Danny Dicks, research analyst for Light Reading Insider and author of the report. "GPON is likely to keep its technology leadership position through at least 2011, at which point next-generation PON technologies will emerge."

The current economic slowdown is having an immediate effect on GPON revenues, and a prolonged slump could have significant implications for GPON suppliers, Dicks advises. "GPON will be the dominant PON technology worldwide, although we expect active and point-to-point Ethernet to continue to be chosen for some FTTH and many FTTC deployments over the next five years," he says.

  Other key findings of GPON: Still Waiting for Lift-Off include:

  --  The GPON equipment market will be smaller -- both now and in the
      future -- than predicted in 2007, but will still be worth $2 billion
      per year by 2011.
  --  GPON is likely to displace EPON as the technology of choice in Asian
      markets, and will become the dominant FTTH technology worldwide over
      the next two to three years.
  --  Potential replacement technologies are still several years away, which
      means the GPON window of opportunity is still open.

GPON: Still Waiting for Lift-Off is available as part of an annual single-user subscription (12 monthly issues) to Light Reading Insider, priced at $1,595. Individual reports are available for $900 (single-user license).

To request a free executive summary of the report, or for details on multi-user licensing options, please contact:

  Jeff Claudino
  Director of Sales
  Insider Research Services

  Press/analyst contact:

  Dennis Mendyk
  Managing Director
  Insider Research Services

  About Light Reading

Founded in 2000, Light Reading ( is the leading online media, research, and focused event company serving the $3 trillion worldwide communications market. is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading's research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.

About TechWeb

TechWeb (, the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise,,, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, Wall Street & Technology magazines. TechWeb also provides end-to-end services ranging from next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $1.6 billion.

  * 13.3 million business decision-makers: based on # of monthly connections

  About United Business Media Limited (

United Business Media Limited (UBM) is a global media and marketing services company that informs markets and brings the world's buyers and sellers together at events, online, in print, and with the information they need to do business successfully. UBM serves professional and commercial communities, from IT professionals to doctors, from journalists to jewelry dealers, from farmers to pharmacists around the world. UBM employs more than 6,500 people in more than 30 countries. UBM's businesses operating in the US include CMPMedica, Commonwealth Business Media, Everything Channel, PR Newswire, RISI, TechInsights, TechWeb and Think Services. UBM is listed on the London Stock Exchange (UBM.L) and has a market capitalization of $1.6 billion.

SOURCE: Light Reading

CONTACT: Jeff Claudino, Director of Sales, +1-619-229-9940,; or Press/analyst contact, Dennis Mendyk, Managing
Director, +1-201-587-2154,, both of Insider Research

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