Dell’Oro: Sales of broadband access equipment rose 8% in 4Q18

Global revenue for broadband access equipment revenue reached $3.4 billion, growing 8 percent Y/Y in 4Q 2018. Increased shipments of GPON OLTs and DOCSIS 3.1 CPE offset CCAP spending declines, according to a new report from Dell’Oro Group.

“FTTH deployments globally continue to show strength,” said Jeff Heynen, Research Director, Broadband Access and Home Networking. “Both 2.5 Gbps GPON and 10 Gbps EPON equipment marked Y/Y increases, particularly in China. The gains on the telco side helped to offset surprising weakness in cable CCAP spending, as MSOs delay new capacity purchases while they determine how to move forward with distributed access architectures (DAA),” explained Heynen.

Some highlights from Dell’Oro’s 4Q 2018 Broadband Access Quarterly Report:

• Total DSL port shipments increased 16 percent Y/Y, with VDSL ports increasing 13 percent and Gfast ports increasing 232 percent.
• Total PON ONT unit shipments increased 6 percent Y/Y, driven by strong demand for 2.5 Gbps GPON units in China and the Asia-Pacific region as a whole.
• Total cable access concentrator revenue decreased 18 percent Y/Y to $380 M, driven by a slowdown in CCAP license purchases in North America.
• 2.5 Gbps GPON, 10 Gbps EPON, and G.fast equipment all saw spending increases in the quarter.