Global investment in GPON infrastructure is expected to reach billions of dollars in the next few years

GPON (Gigabit Passive Optical Network) technology is a key emerging access technology used in FTTB and FTTH applications. It can provide a scalable and cost-effective architecture for high-definition television (HDTV) or cloud computing. The ever-increasing bandwidth demand put forward by advanced applications. The world's leading network operators all regard GPON as their first choice for PON technology. Global investment in GPON infrastructure is expected to reach billions of dollars in the next few years.

Cost optimization, high energy efficiency, diversity and scalability, network stability, and interoperability are considered key requirements for operators to deploy GPON infrastructure. The highly innovative GPON system-on-chip solution can meet these requirements and support network operators to successfully deploy a high-efficiency GPON network.


GPON technology provides a powerful point-to-multipoint solution that can meet the ever-increasing bandwidth requirements while ensuring that the access part of the communication infrastructure has low maintenance costs. The GPON network consists of an optical line terminal (OLT) located in the central office and multiple optical network units (ONUs) located at the user site. According to different FTTH / FTTB user occasions, high-bandwidth GPON links can be terminated in many different user-side devices, such as SFU (Single Home Unit), SBU (Single Business Unit), HGU (Home Gateway Unit), MDU (Multiple Residential Units) or CBU (Cellular Backhaul Unit).


GPON will be the main PON standard in the next few years


The International Telecommunication Union (ITU), FSAN and the Institute of Electronics and Electrical Engineers (IEEE) have established several different PON standards. Within ITU, the earliest version was the asynchronous transmission mode PON (APON) standard, then the broadband PON (BPON) standard (ITU-T G.983). It then evolved into ITU-T G.984 or the so-called Gigabit PON (GPON) standard, which was approved in March 2008. The GPON standard achieves additional performance improvements in terms of total bandwidth and bandwidth efficiency, with a downstream bandwidth of 2.488Gbps and an upstream bandwidth of 1.244Gbps. The GPON standard has been widely used in all regions except Japan. The ITU and FSAN (Full Service Access Network) working groups are studying the next-generation GPON standard, namely 10G GPON, which is expected to be officially released in 2014.


Within IEEE, the IEEE 802.3 Ethernet PON (EPON or GEPON) standard was completed in 2004. The EPON standard is mainly adopted by operators in Japan and China. The key differences between GPON and EPON standards are data rate and bandwidth utilization.


In the next few years, PON equipment revenue prospects are very promising. According to market researchers of InfoneTIcs (the second quarter of 2010), the compound annual growth rate (CAGR) of PON revenue from 2009 to 2014 will reach 22.5%. However, the next-generation 10G PON system will not be used on a large scale until 2014. Therefore, in the next few years, the market will be dominated by GPON. InfoneTIcs predicts that GPON FTTH users will increase from 2.9 million in 2009 to more than 46 million in 2014, and GPON ONU equipment market revenue is expected to reach 2.5 billion US dollars in 2014.  

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