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PONs provides easy installation and maintenance vis-à-vis
traditional networks, which makes its operations much more
simplified. PON minimizes the network’s downtime during upgrade and
expansion by using the existing fiber optic cable and only replacing
the electronics, rather than changing the entire infrastructure.
Furthermore, optical fibers used in PON are made up of dielectric
material and thus electromagnetic radiations are not produced.
Therefore, information or data remains secure during operation of
PON. Components required by PON are wide area network (WAN) router,
Ethernet aggregation switch (EAS), core router/switch, work group
terminals (WGT), and fiber and passive optical splitters. PONs does
not encounter multi-wired chaotic closets due to their inbuilt
capabilities, which makes its operations hassle-free. Considering all
these factors, the impact of this factor is analyzed to be medium
currently and is expected to become high during the forecast period.
The major driving factors of the passive optical network equipment
market in India are the high return on investments and low cost of
ownership. In addition, unmatched security, higher bandwidth and
greater reliability are set to bolster the growth of PON market in
India. Moreover, simplified network operations, eco-friendly
solutions and scalability are acting as the driving force for this
market. It is also to be duly noted that high initial investments
coupled with high component cost at operator’s interface and huge
research and development costs is set to discourage start-ups and
other mid-sized firms in entering into the India passive network
equipment market, thus behaving as a restraint. The opportunities in
this market are the need for higher bandwidth and rising demand for
passive optical network in India.
Gigabit passive optical network (GPON) equipment is expected to
generate larger revenue as compared to its counterpart - Ethernet
passive network (EPON). Higher bandwidth allocation and low power
consumption are significant features offered by GPON that has made it
superior in terms of technology, compared to EPON. In addition, less
number of active switching devices used in the network and advanced
security is additional advantages provided by the GPON equipment.
Thus, GPON is expected to witness significant growth rate over the
forecast period from 2014 to 2020.
GPON optical network terminals (ONTs) accounted for majority market
share in the year 2013 owing to the growth in gigabit passive optical
network. As ONTs are components located at the subscribers end, the
number of subscriber is similar to the number of ONT’s. GPON’s
efficient and advanced networking technology has driven the demands
for its components: ONT and OLT.
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