Broadband equipment spend hits record high, fueled by PON: Analyst

Sept. 29, 2022
Total PON equipment revenue for the second quarter jumped 19% year-over-year, according to new analysis from Dell’Oro Group.

Dell'Oro Group's recently issued 2Q 2022 Broadband Access and Home Networking quarterly report reveals that total global revenue for the broadband access equipment market increased to $4.5 billion in 2Q 2022, up 12 percent year-over-year (Y/Y).

The analyst reports that spending on PON equipment continues to fuel the overall market, with revenue for PON OLTs reaching a record $1.3 billion in the quarter.

The report also discerns that total XGS-PON ONT unit shipments exceeded 1 million for the first quarter on record, reaching 1.2 million worldwide.

On the minus side, the new research shows that for the reporting period, total cable access concentrator revenue decreased 4 percent Y/Y to just over $236 million.

"Record quarterly revenue for remote PHY devices and remote OLTs couldn’t offset weakness in CCAP channel licenses," added the analyst's summary.

Meanwhile, Dell'Oro found that total cable CPE units increased 3 percent Y/Y over the period, as vendors were able to fulfill orders that had been backlogged for multiple quarters.

The analyst noted that total revenue was up 11 percent Y/Y as higher-end DOCSIS 3.1 gateways are tabulated as a percentage of total unit shipments.

Jeff Heynen, vice president of Dell'Oro's Broadband Access and Home Networking practice, concluded:

“Operators in Europe, China, and Southeast Asia increased their spending on PON equipment, offsetting some seasonal slowness in North America. The transition to fiber is clearly a worldwide phenomenon, no longer isolated to just a handful of countries."

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