DSL ICs market rebounds

The DSL ICs market is back on the up, according to the latest figures from In-Stat/MDR. The market endured a difficult 2001 with excess inventory stifling growth, however, 2002 yielded improved port shipments.

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By  Zoe Moleshead Published  October 7, 2003

The DSL ICs market is back on the up, according to the latest figures from In-Stat/MDR. The market endured a difficult 2001 with excess inventory stifling growth, however, 2002 yielded an increase in the number port shipments from 38.1 million in 2001 to 50 million in 2002.

However, the growth in port shipments was tempered by falling revenues, which dropped from US$ 699.0 million in 2001 to US$ 594.9 million in 2002

“There are a number of drivers and challenges for DSL services and equipment, and, as a component-level device, DSL IC shipments are largely a function of the growth of DSL services,” says Sam Lucero, industry analyst with In-Stat/MDR.

“Key drivers include consumer demand for broadband content and services, new service provider revenue opportunities, reduction of subscriber churn, dense urban populations in Asia and, to a lesser extent, Europe, and, strong service provider competition in Asia,” he adds.

In terms of the vendors, the big four — GlobespanVirata, ST Micro, Centillium, and Texas Instruments — garnered 81% of the DSL ICs port shipment market between them.

Moving forward In-Stat is expecting growth to continue, with port shipments expected to reach 107.9 million by 2007 and revenue predicted to top US$732.8 million in the same year.

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