Broadband Access Market Update: Key Trends and Insights
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Broadband Access Equipment Market Overview
According to a detailed report by Dell'Oro Group, the global revenue for the Broadband Access equipment market saw a decline, reaching $4.2 billion in 2Q 2024—a drop of 8 percent year-over-year. Despite this, spending showed resilience, with a significant 4 percent increase from the previous quarter, which recorded the lowest expenditure in nearly three years.
Key Insights from the Report
Jeff Heynen, Vice President at Dell'Oro Group, stated that cable operators are feeling the pressure from fiber internet service providers and Fixed Wireless companies that are effectively drawing away residential customers. This shift has led to Fixed Wireless CPE unit shipments experiencing their fourth consecutive quarter of year-over-year growth, while cable operators have notably cut back on their own purchases, resulting in historic lows for unit shipments.
PON Equipment Spending
The report highlights that total spending on Passive Optical Network (PON) equipment experienced a decline of 6 percent compared to 2Q 2023, primarily due to an 18 percent reduction in spending on PON Optical Line Terminals (OLTs).
Growth of Fixed Wireless CPE
Notably, spending on Fixed Wireless CPE surged by an impressive 32 percent year-over-year, driven predominantly by robust growth in 5G Sub-6 GHz unit shipments across various regions.
Impact on DOCSIS Infrastructure
On the other hand, spending on DOCSIS infrastructure took a hit, dropping by 25 percent compared to the previous year. However, spending on Distributed Access Architecture (DAA) equipment, including Remote PHY Devices (RPDs) and Remote MAC/PHY Devices (RMDs), remained stable.
Trends in Residential Equipment
A notable increase was observed in spending on residential Wi-Fi routers, which jumped by 13 percent year-over-year. This rise reflects consumers' ongoing efforts to upgrade their home network setups, particularly after the surge in internet usage during the pandemic.
About Dell'Oro Group
Dell'Oro Group is a prominent market research firm focusing on strategic competitive analysis across telecommunications, security, enterprise networks, and data center markets. They provide extensive quantitative and qualitative insights, assisting firms in making informed business decisions. For inquiries, Dell'Oro Group can be reached at +1.650.622.9400 or through their website.
Frequently Asked Questions
What are the main findings of the Dell'Oro Group report?
The report indicates an 8% year-over-year decline in broadband equipment revenue, with significant insights on PON and Fixed Wireless growth amidst DOCSIS decreases.
Why are cable operators struggling?
Cable operators are losing ground to fiber ISPs and Fixed Wireless providers, resulting in decreased CPE purchases and historically low shipment levels.
What is driving the increase in spending on Fixed Wireless CPE?
The increase is primarily attributed to strong growth in 5G Sub-6 GHz unit shipments, significantly impacting the spending trends within this segment.
How is the residential market evolving?
There has been a noteworthy rise in spending on residential Wi-Fi routers as consumers opt for upgrades and mesh systems to enhance their home internet experience.
Where can I find more information about Dell'Oro Group?
Dell'Oro Group offers comprehensive analysis and data on their website, providing valuable insights into the telecommunications market and related sectors.
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