Broadband access equipment revenue hit by virtualization

February 03, 2020 //By Jean-Pierre Joosting
Broadband access equipment revenue hit by virtualization
A newly published report by Dell'Oro Group predicts that sales of cable broadband access equipment will decrease with a 2 percent CAGR from 2019 to 2024.

The virtualization of network infrastructure, which is already playing out in the cable market, will 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 Group. Virtualization, coupled with subscriber saturation in some mature markets will result in gradually declining revenue for broadband access equipment globally," added Heynen.

Further, the report finds that virtual CMTS/CCAP revenue will grow from $90 Million in 2019 to $418 Million worldwide in 2024, as cable operators move to these platforms to expand broadband capacity. Also, mesh-capable routers and broadband CPE units will reach 30 Million units in 2020.

www.delloro.com


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