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Broadband Equipment Spending Increased 7 Percent Y/Y, Despite Signs of Slowing Subscriber Growth

Aug 15,2022 │ Editor:Azores Networks, LLC

According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, total global revenue for the Broadband Access equipment market increased to $4.6 B in 1Q23, up 7 percent year-over-year (Y/Y). Spending on infrastructure remained robust. However, ONTs. Modems, and other CPE units to connect broadband subscribers, dropped 7 percent Y/Y.

“For many service providers, broadband subscriber growth is slowing, resulting in a reduced need for new CPE,” said Jeff Heynen, Vice President with Dell’Oro Group. “Meanwhile, infrastructure purchases are strong as providers continue to expand their footprints and replace legacy copper networks,” explained Heynen.

Additional highlights from the 1Q 2023 Broadband Access and Home Networking quarterly report:

Total residential Wireless LAN units were up 5 percent Y/Y, marking the first Y/Y increase since 1Q 2021. Consumers are finally increasing their purchases of Wi-Fi 6 and Wi-Fi 6E units after last upgrading back in 2020.

Total cable access concentrator revenue was up 4 percent Y/Y at $265 M. Remote PHY devices, Remote OLTs, and Virtual CMTS platforms all recorded significant revenue gains for the quarter, as cable operators continue to expand their DAA and fiber initiatives.