Virtualization cutting into broadband access gear revenue

Feb. 3, 2020
According to the Dell'Oro Group, sales of cable broadband access equipment will decrease with a 2% CAGR from 2019 to 2024. The virtualization of network infrastructure, which is ...

According to the Dell'Oro Group, sales of cable broadband access equipment will decrease with a 2% CAGR from 2019 to 2024. The virtualization of network infrastructure, which is already playing out in the cable market, is expected to extend to other equipment areas, thereby reducing traditional hardware revenue.

"Global operators continue to invest in their broadband access networks, but are increasingly delivering more capacity with lower-cost, virtualized hardware," said Jeff Heynen, senior research director at Dell'Oro. "Virtualization, coupled with subscriber saturation in some mature markets, will result in gradually declining revenue for broadband access equipment globally."

Other findings indicate:

  • Virtual CMTS/CCAP revenue is expected to grow from $90 million in 2019 to $418 million worldwide in 2024, as cable operators move to these platforms to expand broadband capacity.
  • Mesh-capable routers and broadband customer premises equipment (CPE) units are expected to reach 30 million units in 2020.        
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