North American Spending Down 26 Percent from Last Year as Tier 1s Push Pause
REDWOOD CITY, Calif. – December 7, 2023– According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, total global revenue for the Broadband Access equipment market decreased to $4.1 B in 3Q 2023, down 14 percent year-over-year (Y/Y). The lone bright spot this quarter was spending on Fixed Wireless CPE, as North American operators continued to expand their 5G Sub-6GHz subscriber bases.
“The inventory alignment that began in North America has now migrated to Europe and Latin America, as both regions saw significant Y/Y declines in equipment spend,” said Jeff Heynen, Vice President with Dell’Oro Group. “Meanwhile, Chinese operators are once again accelerating their purchases of PON ONTs to support growing FTTR (Fiber-to-the-room) deployments,” explained Heynen.
Additional highlights from the 3Q 2023 Broadband Access and Home Networking quarterly report:
- Total Fixed Wireless CPE unit shipments were up 1 percent from last quarter, buoyed by indoor 5G Sub-6GHz units, which reached just below 1.3 M units for only the second time on record.
- Total cable access concentrator revenue was down 18 percent Y/Y at $197 M. Remote PHY devices and Virtual CMTS platforms both saw slowdowns this quarter, as cable operators pulled from their existing inventories. Meanwhile, Remote OLT (R-OLT) revenue was up Y/Y, but down from last quarter.
The Dell’Oro Group Broadband Access and Home Networking Quarterly 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. Covered equipment includes Converged Cable Access Platforms (CCAP) and Distributed Access Architectures (DAA); Digital Subscriber Line Access Multiplexers ([DSLAMs] by technology VDSL, VDSL Profile 35b, and G.FAST); PON Optical Line Terminals (OLTs), Cable, DSL, and PON CPE (Customer Premises Equipment); Fixed Wireless Access (FWA) CPE; and Residential WLAN Equipment, including Mesh Routers. For more information about the report, please contact dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, data center infrastructure, and network security markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
# # #
