Broadband equipment sales continue strong in 3Q22: Dell’Oro

Dec. 8, 2022
PON systems again led the way. PON optical line terminal (OLT) sales established a record, topping the previous record set the quarter before.

While other areas of optical communications stumbled in the third quarter of 2022 (see, for example, “Component shortages cause 6% decline in 3Q22 optical transport systems sales: Dell’Oro”

), broadband equipment sales continued chugging along, according to Dell’Oro Group. The market research firm states in its newly released Broadband Access and Home Networking Quarterly Report that broadband gear revenues reached $4.7 billion in 3Q22, a 17% jump year-on-year.

PON systems again led the way. PON optical line terminal (OLT) sales established a record, topping the previous record set the quarter before, topping out at $1.3 billion. Meanwhile, XGS-PON optical network terminal (ONT) unit shipments surpassed a million for the second straight quarter, reaching 1.5 million worldwide. Overall, total PON equipment revenues grew 27% year-on-year, meaning PON sales have grown year-on-year for 10 quarters in a row.

“Thanks to a robust competitive environment and ongoing subsidization efforts, investments in new fiber broadband networks and equipment continue to grow,” said Jeff Heynen, vice president with Dell’Oro Group. “It will be interesting to see if this momentum and resilience will carry into the fourth quarter and 2023, given the macroeconomic headwinds.”

While many cable MSOs are deploying more fiber broadband infrastructure than ever to help boost the PON market, they also are investing in upgrading their HFC networks. Sales of Remote PHY devices for Distributed Access Architecture projects, and remote OLTs, both set records in 03Q22. The sales offset spending decreases for more traditional HFC technology, leading to a flat year-on-year total of $259 million for total cable access concentrator revenue. Meanwhile, total cable CPE unit shipments rose 5% versus the year-ago quarter while revenues increased 9%. Again, the strength of higher-end DOCSIS 3.1 gateway purchases indicated an emphasis on network upgrades.

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); digital subscriber line access multiplexers (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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