Virtualization Trend Reducing Broadband Access Equipment Revenue

 

  • DELL’ORO GROUP

REDWOOD CITY, CA Sales of cable broadband access equipment will decrease with a 2 percent CAGR from 2019 to 2024, according to a newly published report by Dell'Oro Group, a provider of telecommunications market information. The report predicts that the virtualization of network infrastructure, which is already playing out in the cable market, will extend to other equipment areas, thereby reducing traditional hardware revenue.

Market Shift from Broadcast Access Networks to Virtualized Hardware

"Global operators continue to invest in their broadband access networks, but are increasingly delivering more capacity with lower-cost, virtualized hardware," said Jeff Heynen, senior research director at Dell'Oro Group. Virtualization, coupled with subscriber saturation in some mature markets will result in gradually declining revenue for broadband access equipment globally," added Heynen.

Additional highlights from the Broadband Access 5-Year Forecast Report:

  • Virtual CMTS/CCAP revenue will grow from $90 million in 2019 to $418 million worldwide in 2024, as cable operators move to these platforms to expand broadband capacity.
  • Mesh-capable routers and broadband CPE units will reach 30 million units in 2020.

About the Report
The Dell'Oro Group Broadband Access 5-Year Forecast 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.

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