Tuesday, January 31, 2023

Dell'Oro: Sustained broadband spending through 2027

Sales of PON equipment for fiber-to-the-home deployments, cable broadband access equipment, and fixed wireless CPE will all increase from 2022 to 2027, as service providers continue to expand their fiber and DOCSIS 4.0 networks, while expanding the types of services they deliver to residential subscribers, according to a recent report from Dell'Oro Group.

"Service providers around the world continue to transition their broadband networks to fiber and retire their existing copper and DSL networks," said Jeff Heynen, Vice President at Dell'Oro Group. "With markets expected to become more competitive, broadband providers will have to continue spending in order to differentiate their services not only by increasing advertised speeds, but also improving latency and expanding managed Wi-Fi services," added Heynen.

Additional highlights from the Broadband Access & Home Networking 5-Year January 2023 Forecast Report:

  • PON equipment revenue is expected to grow from $11.0 B in 2022 to $13.2 B in 2027, driven largely by XGS-PON deployments in North America, EMEA, and CALA.
  • Revenue for Cable Distributed Access Equipment (Virtual CCAP, Remote PHY Devices, Remote MACPHY Devices, and Remote OLTs) is expected to reach $1.5 B by 2027, as operators ramp their DOCSIS 4.0 and fiber deployments.
  • Revenue for Fixed Wireless CPE is expected to reach $2.2 B by 2027, led by shipments of 5G sub-6GHz and 5G Millimeter Wave units.