Data: Broadband access equipment market down 12% in Q1
May 31, 2024
According to a report from Dell’Oro Group, a source for market information about the telecommunications, security, networks, and data centre industries, total global revenue for the Broadband Access equipment market decreased to $4.1 billion in Q1 2024, down 12 per cent year-on-year. North American broadband providers reduced their spending by 25 per cent year-on-year, as continued subscriber churn, excess inventory, and stubbornly high labour costs continue to put a damper on new equipment purchases.
“The North American broadband market is in the midst of a fundamental shift in the competitive landscape, which is having a significant impact on broadband equipment purchases,” said Jeff Heynen, Vice President with Dell’Oro Group. “In particular, cable operators are trying to navigate mounting, but predictable, broadband subscriber losses with the need to invest in their networks to keep pace with further encroachment by fibre and fixed wireless providers.”
Additional highlights from the Q1 2024 Broadband Access and Home Networking quarterly report:
- Total PON equipment spending was down 9 per cent from Q1 2023, driven by a 22 per cent decline in spending on PON OLTs.
- Spending on Fixed Wireless CPE increased 29 per cent in Q1 2024, driven once again by strong growth in 5G Sub-6 Ghz unit shipments in North America.
- Spending on DOCSIS infrastructure plummeted 24 per cent year-on-year, with spending on Remote OLTs and vCMTS licences seeing the biggest declines.
- Wi-Fi 6E and Wi-Fi 7 Router and CPE unit shipments continue to show significant year-on-year increases.