DSL Port Shipments Decline By 10 Percent

According to a report soon to be released by research firm Dell'Oro Group, DSL port shipments have decline by 10 percent in 2004.

According to a soon to be released report from Dell’Oro Group, the level of DSL Access Concentrator (DSLAM) ports shipped in the second quarter of 2004 declined by more than 2 million from its peakof approximately 14 million in 4Q03. In a report issued in February 2004, Dell’Oro Group had forecast that the DSLAM market was due for a correction as shipments in recent quarters had far exceedednew subscriber additions.

“The number of DSL port shipments for 2Q04 shrank to approximately 12 million,” said Tam Dell’Oro, CEO and founder of Dell’Oro Group. “This is the second sequential quarter of lower shipment levels which we believe is a signal of a correction. The decline was broad-based, affected most manufacturers, and occurred most notably in Europe, followed by Asia. This correction could last another quarter as there is still more capacity than subscribers. However, new DSL subscriptions are very strong, so Dell’Oro Group forecasts that this pull-back will be temporary.”