Driven by PON, broadband equipment spending sets record in 2Q22: Dell’Oro

Sept. 19, 2022
Network operators spent a record $1.3 billion on PON optical line terminals (OLTs) during the second quarter. Meanwhile, quarterly XGS-PON ONT unit shipments exceeded 1 million for the first time, reaching 1.2 million worldwide.

Thanks in large measure to a 19% year-on-year jump in PON gear spending, worldwide revenues within the broadband equipment market reached $4.5 billion in the second quarter of 2022, says Dell’Oro. The total, a 12% uptick from the second quarter of 2021, set a revenue record, the market research firm states in its 2Q 2022 Broadband Access and Home Networking Quarterly Report.

Network operators spent a record $1.3 billion on PON optical line terminals (OLTs) during the second quarter. Meanwhile, quarterly XGS-PON ONT unit shipments exceeded 1 million for the first time, reaching 1.2 million worldwide.

“Operators in Europe, China, and Southeast Asia increased their spending on PON equipment, offsetting some seasonal slowness in North America,” noted Jeff Heynen, vice president, broadband access and home networking at Dell’Oro. “The transition to fiber is clearly a worldwide phenomenon, no longer isolated to just a handful of countries.”

That said, cable operators are beefing up their hybrid fiber/coax (HFC) networks as well. While total cable access concentrator revenue shrank 4% versus 2Q21 to just over $236 million, cable MSOs spent a record amount on Remote PHY devices and remote OLTs. Total cable CPE unit shipments grew 3% year-over-year, as vendors fulfill backlogged orders. Total revenue was up 11%, with higher-end DOCSIS 3.1 gateways an increasing percentage of total unit shipments.

Dell’Oro’s Broadband Access and Home Networking Quarterly Report provides an 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); DSLAMs by technology (ADSL/ADSL2+, G.SHDSL, VDSL, VDSL Profile 35b, and G.fast); PON OLTs; cable, DSL, and PON CPE; and SOHO WLAN equipment, including mesh routers.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.

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