Total global revenue for the Broadband Access equipment market increased to $4.6 billion in the first quarter of 2023, 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 as broadband subscriber growth slows.
"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.”
One of the subscriber’s bright spots was seen in Wi-Fi. Total residential Wireless LAN units were up 5 percent Y/Y, marking the first Y/Y increase since the first quarter of 2021. Dell’Oro noted that consumers are finally increasing their purchases of Wi-Fi 6 and Wi-Fi 6E units after last upgrading in 2020.
Cable equipment revenue is also making progress. Total cable access concentrator revenue was up 4 percent Y/Y at $265 million. 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.
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