Continued Strong Fiber Investments Drive 18 Percent Growth in Broadband Equipment Spending
- June 15, 2021
Global revenue for the broadband access equipment market increased to $3.3 billion in the first quarter of 2021, up 18 percent year-over-year, according to Dell’Oro Group. Growth came from spending on passive optical network (PON) optical line terminal (OLT) ports, particularly 10 Gbps PON technologies.
“The shift to 10 Gbps PON technologies is happening quickly and on a global basis,” said Jeff Heynen, vice president of broadband access and home networking at Dell’Oro Group. “The only thing preventing further expansions are supply chain constraints and increased costs.”
Additional highlights from Dell’Oro Group’s first-quarter “Broadband Access and Home Networking” report:
- Total broadband access equipment revenue was down 6 percent from the record set in the fourth quarter of 2020.
- Total cable access concentrator revenue increased 15 percent year-over-year to $243 million. Although Data Over Cable Service Interface Specification (DOCSIS) license purchases were down, new hardware purchases in the form of converge cable access platform chassis, line cards and distributed access architecture nodes and modules helped to push revenue higher.
- Total Digital Subscriber Line access concentrator revenue was down 30 percent year-over-year, driven by slower port shipments worldwide as more operators shift their spending to fiber.
- Total PON optical network terminal revenue was down quarter over quarter, but unit shipments remained above 30 million globally for the second straight quarter.
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Source: Dell’Oro Group