The success of NG-PON2 heavily relies upon availability of low-cost, reliable tunable optics, according to Ovum.
Shipments of optical line terminals (OLTs) and optical network terminals (ONTs) are increasing, as the vendor supplier base grows alongside news of NG-PON2 equipment deployments, Julie Kunstler, principal analyst at Ovum, told Broadband World News.
"Ovum just published its wireline broadband access equipment forecast," she said. "We expect significant price declines in NG-PON2 ONTs and ONUs over the forecast period. In terms of CAGR for 2018 to 2023, there'll be a decline of 21%."
However, NG-PON2 optics -- OLTs, ONTs and optical network units (ONUs) -- will remain higher than those of XGS-PON, Kunstler noted. That's because, in part, tunable optics remain more expensive.
"In addition, the volumes for NG-PON2 will remain lower than the expected volumes for XGS-PON as we are not seeing interest in the NG-PON2 approach by China's operators," she added. "However, for some operators there are clear benefits to the NG-PON2 approach."
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