Broadband Access Equipment Spending Jumps 1 Percent in Q3

Third-quarter broadband access equipment spending remains strong, up 1 percent year-over-year, according to Dell'Oro Group



REDWOOD CITY, Calif. -- If the global COVID-19 pandemic has highlighted anything, it’s that broadband access is a key element that has touched consumers lives in various ways. As companies and schools have been handling the pandemic, there has been an influx in telecommuting and children conducting remote learning—two factors that require a robust broadband connection.

Global revenue for broadband access equipment rose to $3.1 billion, up 1 percent in 3Q 2020 year-over-year (Y/Y), according to the Dell’Oro Group, during the third quarter. Growth came from spending on cable infrastructure and CPE equipment, as well as sustained spending on PON equipment.

"The COVID-19 pandemic continues to accelerate operators' fiber and cable capacity expansions," said Jeff Heynen, Vice President, Broadband Access and Home Networking.

He added, "the net result is a faster transition to premium 1 Gbps residential services.”

Cable, which continued to hang onto its subscriber lead in the overall broadband subscriber market with over 1.3 million new customers, continued to spend capital on new equipment. Driven by solid growth in CCAP license purchases in North America, EMEA, and CALA, total cable access concentrator revenue increased 6 percent Y/Y to $280 million.

Overall, the research firm said cable Infrastructure and CPE spending surged past $1 billion for the first time since 2018.

Another bright spot was in-home network equipment. Total Mesh Router unit shipments hit 7.3 million units, as consumers continue to add these systems to ensure whole-home Wi-Fi coverage.

Unsurprisingly, as more broadband customers switch to cable or FTTH where it’s available, total DSL Access Concentrator revenue declined 7 percent Y/Y, driven by plummeting ADSL port shipments worldwide.


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