NEW YORK, April 12 /PRNewswire/ -- The North American passive optical
networking (PON) and fiber to the premises (FTTP) market may be hot, but it's
going to get a lot hotter in 2005 and 2006, as an influx of new products and
service provider RFPs add fuel to the fire, according to a new report from
Light Reading (www.lightreading.com).
The report -- entitled "Passive Optical Networks: 21st Century Access?"
and published by the subscription research service Light Reading Insider,
(www.lightreading.com/insider) -- evaluates technology choices, vendor
strategies, and the lessons to be learned from PON activity throughout the
world. A bright future is expected for PON as the centerpiece of carriers'
triple-play services over FTTP.
"In the near term, greenfield deployments, especially by utilities and
municipalities with long-term ROI expectations, will be the main addressable
market," says Daro Clark, the report's author. "But FTTP will not result in
higher RBOC capex; it will simply replace spending on legacy copper
This report looks at the recent customer trends in FTTP/PON and explores
the barriers to widespread deployment. The Insider's conclusions include:
* The RBOC's choice of the BPON standard is the strongest validation of
PON technology in the U.S. to date.
* Verizon is the most ambitious RBOC, while SBC and BellSouth are less
convinced of FTTP's short-term proposition.
* Beyond the RBOCs, the opportunities are plentiful: Independent telcos,
cable and utility companies, municipalities, and real estate developers
provide PON vendors with a captive but fragmented market.
* PON equipment prices will decline 20 percent to 30 percent in the next
* Regulatory uncertainty regarding RBOC unbundling commitments and other
companies' rights to offer PON-based services is keeping in the
industry at the bleeding edge.
* With over 1 million FTTP subscribers and a projected 5 million by the
end of 2005, Japan is the test bed for next-gen access networks.
* The race is on between the EPON and GPON standards for industry
acceptance, but ultimately the customers' existing network technologies
will force their decisions.
Private vendors analyzed in this report: Optical Solutions Inc.; Salira
Optical Networking Systems Inc.; Alloptic Inc.; CEOS Pty Ltd., and Flexlight
Public vendors analyzed in this report: Advanced Fibre Communications Inc.
(Nasdaq: AFCI), Alcoa Fujikura Ltd. (Jointly owned by Alcoa Inc. [NYSE: AA]
and Fujikura Ltd.), Alcatel SA (NYSE: ALA), Fujitsu Ltd.
(OTC Bulletin Board: FJTSY), and Hitachi Ltd. (NYSE: HIT)
The report is available as part of an annual subscription to the monthly
Light Reading Insider, which is priced at $1,350. The subscription includes
12 monthly reports covering the hottest wireline equipment and services
markets. Individual reports are available for $900.
To subscribe, or to get more information, please visit:
About Light Reading Insider
Light Reading Insider (www.lightreading.com/insider), an electronic
research service of Light Reading (www.lightreading.com), provides independent
analysis to investors and industry leaders tracking the latest developments in
the telecommunications industry.
Light Reading Insiders
Light Reading Insiders
SOURCE Light Reading
/CONTACT: Laura West, Marketing Director, +1-212-925-0020, ext. 105,
firstname.lastname@example.org, or Dave Williams, Sales Director, +1-415-293-8470,
email@example.com, both of Light Reading Insiders/
/Web site: http://www.lightreading.com
(AFCI AA ALA FJTSY HIT)
CO: Light Reading
ST: New York
IN: CPR MLM PUB TLS
-0- Apr/12/2004 14:00 GMT
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