Gartner on DSL shipments

Worldwide digital subscriber line access multiplexer (DSLAM) port shipments reached 12.4 mil units, a 182% increase from the same period a year ago and a 32% rise quarter over quarter. Worldwide customer premise equipment (CPE) shipments increased 135.5% year over year and 25.8% quarter over quarter to 10.2 mil units in the third quarter of 2003.

"The DSLAM market continues to be dominated by Alcatel, with its diverse customer base, and Huawei, riding the Chinese broadband wave. The second tier is more volatile, and most noteworthy this quarter was the strong performance of the Japanese vendors," said Jouni Forsman, principal analyst for Gartner's worldwide Telecommunications and Networking group. "In the DSL CPE market, established original equipment manufacturers (OEMs) remain challenged by new Taiwanese entrants, many of whom are shipping directly to service providers under service provider brand names."

Alcatel was the leader in the worldwide DSLAM market in the third quarter of 2003 with 34.4% of port shipments (see Table 1), followed by Huawei with 17.7% market share. Huawei experienced the strongest shipment increase during the quarter, compared with the same period in 2002. The DSLAM market is already very concentrated, with the top two vendors making up 52.1% of the market.

Preliminary Top Worldwide xDSL CO Vendors' Port Shipments
Estimates for 3Q03
(Thousands of Units)
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3Q03 3Q03 3Q02 3Q02 Port Market Port Market Growth Company Shipments Share(%) Shipments Share(%) (%) ---------------------------------------------------------------------- Alcatel 4,283.2 34.4 1,531.1 34.7 179.7 Huawei 2,200.0 17.7 160.0 3.6 1,275.0 NEC 1,089.0 8.8 440.0 10.0 147.5 Sumitomo 826.0 6.6 306.5 6.9 169.5 Siemens 677.1 5.4 132.3 3.0 411.8 Lucent Technologies 677.1 5.4 222.6 5.0 204.2 Others 2,690.1 21.6 1,619.5 36.7 66.1 Total 12,442.5 100.0 4,412.0 100.0 182.0 ---------------------------------------------------------------------- Source: Gartner Dataquest (November 2003)

Preliminary Top Worldwide xDSL CPE Vendors' Port Shipments Estimates for 2Q03 (Thousands) ---------------------------------------------------------------------- 3Q03 3Q03 3Q02 3Q02 Port Market Port Market Growth Company Shipments Share(%) Shipments Share(%) (%) ---------------------------------------------------------------------- Siemens 1,310.9 12.8 877.2 20.2 49.4 NEC 938.0 9.2 243.0 5.6 286.0 Thomson 874.3 8.6 605.7 14.0 44.3 Westell 626.0 6.1 356.0 8.2 75.8 ZyXel 595.5 5.8 362.7 8.4 64.1 Others 5,857.8 57.4 1,888.0 43.6 210.3 Total 10,202.5 100.0 4,332.6 100.0 135.5 ---------------------------------------------------------------------- Source: Gartner Dataquest (November 2003)