Dell’Oro: Broadband Access equipment spending increased 18% YoY

A newly published Broadband Access and Home Networking 1stQ2021 report by Dell’Oro Group stated that the total global revenue for the Broadband Access equipment market increased to $3.3B in 1st Quarter, up 18 percent year-over-year (YoY).  The growth was driven by strong fiber infrastructure investments such as PON (Passive Optical Network) OLT (Optical Line Terminal) ports, particularly 10 Gbps PON technologies.

XGS-PON revenue jumped 500% year-on-year to about $200 million, reflecting several quarters of steady growth as fiber players up their game in anticipation of competition from cable operators deploying DOCSIS 4.0.

“The shift to 10 Gbps PON technologies is happening quickly and on a global basis,” noted Jeff Heynen, Vice President, Broadband Access and Home Networking at Dell’Oro Group. “The only thing preventing further expansions are supply chain constraints and increased costs,” Heynen explained.
“You can see the trajectory. It’s very clear that operators, if they’re deploying new fiber networks, in a lot of cases they’re doing so starting off with 10-gig. And even those that are beginning the process of upgrading from the first-generation GPON technologies they’re also doing so with XGS,” Heynen said. “This trend was accelerated by the Covid-19 pandemic,” he added.
“I think what has happened among operators, particularly in North America, is that they’re starting to realize that if we deploy more fiber and we do so with multi-gigabit capabilities then we’re putting ourselves in a position to anticipate and at least already be competitive with that DOCSIS 4.0 rollout.”
Additional highlights from the 1Q 2021 Broadband Access and Home Networking quarterly report:
  • Total broadband access equipment revenue was down 6 percent from the record revenue of 4Q 2020.
  • Total cable access concentrator revenue (a category that includes DOCSIS infrastructure elements such as converged cable access platform cores and chassis, virtual CCAP licensing and DAA nodes and modules) increased 15 percent YoY to $243 M.
  • Though DOCSIS license purchases were down, new hardware purchases in the form of CCAP chassis, line cards, and DAA nodes and modules helped push revenue higher.
  • CommScope led the cable access concentrator market with about 40% of revenues in Q1 2021, followed by Cisco (16%), Harmonic (16%) and Casa Systems (15%).
  • 80% of DOCSIS modems shipped in Q1 2021 were of the DOCSIS 3.1 variety.
  • Revenue from purchases of remote-PHY and remote MAC-PHY equipment were up 66% from Q4 2020, which can be interpreted as a sign that cable operators are resuming long-term projects that were put on hold during the height of the pandemic last year.
  • Total DSL Access Concentrator revenue was down 30 percent YoY, driven by slower port shipments worldwide as more operators shift their spending to fiber.
  • Total PON ONT (Optical Network Terminal which is CPE) revenue was down quarter over quarter, but unit shipments remained above 30M globally for the second straight quarter.

About the Report

The Dell’Oro Group Broadband Access and Home Networking Quarterly Report provides a complete overview of the Broadband Access market with tables covering manufacturers’ revenue, average selling prices, and port/unit shipments for Cable, DSL, and PON equipment. Covered equipment includes Converged Cable Access Platforms (CCAP) and Distributed Access Architectures (DAA); Digital Subscriber Line Access Multiplexers ([DSLAMs] by technology ADSL/ADSL2+, G.SHDSL, VDSL, VDSL Profile 35b, and G.FAST); PON Optical Line Terminals (OLTs), Cable, DSL, and PON CPE (Customer Premises Equipment); and SOHO WLAN Equipment, including Mesh Routers. For more information about the report, please contact dgsales@delloro.com

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Long term, MoffetNathanson analysts forecast cable operators (MSOs) having a 50% broadband share in the markets where they compete with FTTH—significantly less than cable’s 85% market share against VDSL and 95% market share against DSL.

References:

https://www.prnewswire.com/news-releases/continued-strong-fiber-investments-push-result-in-18-percent-yy-growth-in-broadband-equipment-spending-according-to-delloro-group-301310595.html

Will Cable Broadband Market Share Decline as Telcos Deploy Fiber?

 

One thought on “Dell’Oro: Broadband Access equipment spending increased 18% YoY

  1. Email from Dell’Oro’s Jeff Heynen on June 15, 2021:

    1. I do not cover point-to-point Ethernet, as it was always a relatively small portion of the total FTTH market. I can tell you that a number of these XGS-PON deployments are to replace legacy P2P Ethernet networks.

    2. We do not currently have figures on fixed wireless access (FWA).

    3. I will be issuing my first forecast for FWA CPE next month, so stay tuned. The units will be broken out into the following categories:

    i. 4G LTE

    ii. 5G sub-6GHz

    iii. 5G mmWave

    iv. 802.11ay/Terragraph

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