Report: Broadband access equipment spend declines
December 8, 2023
According to a report from Dell’Oro Group, a source for market information about the telecommunications, security, networks and data centre industries, total global revenue for the Broadband Access equipment market decreased to $4.1 billion (€3.8bn) in Q3 2023, down 14 per cent year-on-year.
The lone bright spot this quarter was spending on Fixed Wireless CPE, as North American operators continued to expand their 5G Sub-6GHz subscriber bases.
“The inventory alignment that began in North America has now migrated to Europe and Latin America, as both regions saw significant Y/Y declines in equipment spend,” said Jeff Heynen, Vice President with Dell’Oro Group. “Meanwhile, Chinese operators are once again accelerating their purchases of PON ONTs to support growing FTTR (Fiber-to-the-room) deployments.”
Additional highlights from the report:
- Total Fixed Wireless CPE unit shipments were up 1 per cent from last quarter, buoyed by indoor 5G Sub-6GHz units, which reached just below 1.3 million units for only the second time on record.
- Total cable access concentrator revenue was down 18 per cent year-on-year at $197 million. Remote PHY devices and Virtual CMTS platforms both saw slowdowns this quarter, as cable operators pulled from their existing inventories. Meanwhile, Remote OLT (R-OLT) revenue was up year-on-year, but down from last quarter.