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According to a recent report released by Dell'Oro, global sales of Passive Optical Network (PON) equipment rebounded in the first quarter of 2018 after five consecutive quarters of decline.
The report said that this wave of rebound was mainly driven by China's growth, and broadband users in China have pushed optical network terminal (ONT) shipments to the highest level in history.
“China added more than 11 million broadband users in the first quarter of 2018, and network operators such as China Mobile have purchased a large number of ONTs to connect these users to high-speed Internet services.” Alam Tamboli, Senior Analyst, Dell'Oro Group Commented, "Huawei is the main beneficiary of the surge, occupying the largest share of ONT's market share."
Despite encouraging growth, Tamboli said the research firm expects this rebound to be short-lived.
“Although the PON market may have a good start in 2018, we expect that demand will be reduced during the rest of the year, and China Mobile’s speed of developing users will be significantly reduced,” Tamboli explained.
"The top ranked PON suppliers, Huawei and ZTE, are expected to diversify their customer base in anticipation of a reduction in Chinese demand, as Chinese operators accounted for five of their PON revenues in the first quarter of 2018. Four out of four."