PON Drives Uptick in Broadband Equipment Spending in Q3 2022

FTTH PON equipment revenue rises 27 percent year-over-year, reflecting the tenth quarter of revenue growth.

  • Dell'Oro Group

REDWOOD CITY, Calif.—Total global revenue for the Broadband Access equipment market increased to $4.7 billion in the third quarter of 2022, up 17 percent year-over-year (Y/Y), according to Dell’Oro. Spending on PON equipment continues to fuel the overall market, with revenue for PON OLTs breaking last quarter’s record of $1.3 billion.
The research firm noted that total XGS-PON ONT unit shipments exceeded 1 million for the second straight quarter, reaching 1.5 million worldwide.

However, cable equipment was a mixed bag. Total cable access concentrator revenue was flat year over year at $259 million. Remote PHY devices and remote OLTs reached record levels in the quarter as cable operators continued to expand their DAA and fiber initiatives.

Total cable CPE units increased 5 percent Y/Y, as vendors were again able to fulfill orders that had been backlogged for multiple quarters. Total revenue was up 9 percent Y/Y as higher-end DOCSIS 3.1 gateways are the percentage of total unit shipments.

“Thanks to a robust competitive environment and ongoing subsidization efforts, investments in new fiber broadband networks and equipment continue to grow,” said Jeff Heynen, Vice President with Dell’Oro Group.

However, Heynen added, “it will be interesting to see if this momentum and resilience will carry into the fourth quarter and 2023, given the macroeconomic headwinds.”

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