Principal Broadband Stimulus Winners Likely to be the Three Cs: Contractors, Corning, and Calix

NASHVILLE, Tenn.--()--Large construction firms contracted by the independent telcos will get the biggest amount of money because about 60 percent of Fiber-To-The-home (FTTH) costs are in this activity, according to a recent report by Telecom Pragmatics. Corning is the dominant optical fiber provider in the US as well as a large supplier of other outside plant equipment. Calix will likely continue to be the market share leader as an overall access provider to the IOCs because as a private company, it can afford to put market share ahead of margin.

Others that will greatly benefit include FTTH electronics manufacturers like Enablence as well as vendors of passive gear for these applications. Also, given the relatively large amount of funds devoted to the “middle mile,” optical transport suppliers will substantially benefit. In addition, there should be noticeable sales of head-end gear as well as routers for the backend. Moreover, there could be a fair amount of money spent on HFC upgrades by the cable TV companies.

Telecom Pragmatics believes that regarding the use of stimulus money, FTTH will substantially dwarf DSL, wireless, and other solutions.

Telecom Pragmatics published this information in the July 2009 issue of Independent Telco Tactics Monthly -- "Government Stimulus Impact on Telecom Infrastructure at IOCs." Its authors include Sam Greenholtz, John Griffin, Mark Lutkowitz, and David Gross.

Telecom Pragmatics is an independent research firm specializing in telecommunications markets and related technologies since 2003.

Contacts

Telecom Pragmatics
Mark Lutkowitz, 615-460-7470
mark@telecompragmatics.com
www.telecompragmatics.com

Contacts

Telecom Pragmatics
Mark Lutkowitz, 615-460-7470
mark@telecompragmatics.com
www.telecompragmatics.com