2013/07/29 Russia and Brazil have higher FTTH subscriber take-rates, lower GPON spending than China

  Campbell, CALIFORNIA, July 25, 2013—Market research firm Infonetics Research released excerpts from its 2013 GPON Equipment in Brazil, Russia, India, and China (BRIC) market share, size and forecasts report, which tracks 2.5G Gigabit passive optical network (GPON) and 10G GPON in the largest, most vibrant “emerging” economies known as the BRIC countries: Brazil, Russia, India and China.

ANALYST NOTE

“In the all-important BRIC countries, China dominates GPON equipment spending, accounting for nearly 90% of the market,” notes Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.

“There’s a real dichotomy between China and the other BRIC nations, especially Russia and Brazil, where growth is solid but dwarfed by the numbers by China,” Heynen continues. “Take rates in Russia and Brazil have been much better than in China, which continues to pursue a ‘build it and they will come’ philosophy.”

BRIC GPON MARKET HIGHLIGHTS

• In the BRIC countries, the GPON equipment market totaled $1.4 billion in 2012—all from 2.5G GPON
• On the 10G GPON front, only minimal trial deployments are expected in China until 2014 at the earliest, and even later in other countries
• Russia is the most active BRIC market in terms of new FTTH subscribers
• 2.5G GPON equipment revenue is forecast by Infonetics to grow the strongest in India over the next 5 years (2012–2017 CAGR of 8%), though it is a tiny market compared to China, Russia and Brazil
• Huawei is the 2.5G GPON revenue share leader in all 4 BRIC countries; ZTE is the only other vendor with a presence in every BRIC nation

Source: Infonetics Research