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Frost & Sullivan: Upswing in Demand for IPTV and Broadband-based Video Services Stokes Growth in the World xDSL Test Equipment Market

SINGAPORE April 26, 2012

The IPTV network infrastructure is complex with many protocol layers, including the physical layer, asymmetric digital subscriber line (ADSL) layer, and IP layer, present between the video source and the subscriber’s TV. As the video stream passes through these various protocol layers, it is prone to audio drop-out, pixelization and distortion. Service providers understand the need to perform network testing to identify the exact location of faults in the network before those faults affect their customers. World xDSL Test Equipment Market $279.0 million $545.7 million

Srihari Padmanabhan

Wireless broadband technology is witnessing significant activity. Factors such as convenience (mobility), cost of deployment, and bandwidth are pushing subscriber migration from DSL to wireless broadband technology. As network equipment manufacturers develop advanced routers and modems to optimize the reach of wireless technology, the DSL technology market is expected to be negatively impacted, restraining uptake of new xDSL test equipment.

As service providers mull significant capital expenditure (CAPEX) investment in evolving technologies, such as high bandwidth video-based services, market uncertainty necessitates careful analysis of the expected return on investment. Furthermore, a sudden demand shift for a specific DSL variant might affect a service provider’s business.

As the telecommunications space is witnessing fast-paced evolution, test equipment vendors must avidly invest in developing new products and technologies to cater to changing end-user requirements.

"The xDSL test equipment market is highly competitive, with many Tier-1 companies active in the market," says Padmanabhan. "This leaves manufacturers with little control over pricing, which results in reduced profit margins."

Due to pricing pressure from customers, test equipment vendors must revise their own pricing. To be successful in such a scenario, participants must perform a careful analysis of the expected return on investment and leverage their market intelligence information to tap opportunities that lie latent in the market.

Jessie Loh [email protected]

World xDSL Test Equipment Market Test & Measurement

About Frost & Sullivan

Donna Jeremiah
Southeast Asia

[email protected]

Jessie Loh
Southeast Asia

[email protected]

SOURCE Frost & Sullivan

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