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Broadband access spending rises by 18% in a year

Jeff Heynen DellOro.jpg

Spending on broadband access equipment is going up at 18% a year, says market research company Dell’Oro — the same company that a year ago said spending would be flat.

The company said the total global revenue was US$3.3 billion in the first quarter of 2021, an annual rise of 18%.

Growth came from spending on passive optical network optical line terminal (PON OLT) ports, particularly 10Gbps PON technologies.

“The shift to 10Gbps PON technologies is happening quickly and on a global basis,” said Jeff Heynen (pictured), Dell’Oro’s VP for broadband access and home networking.

“The only thing preventing further expansions are supply chain constraints and increased costs,” he added.

The report says that total broadband access equipment revenue was down 6% percent from the record revenue of then fourth quarter of 2020.

Total PON ONT revenue was down quarter over quarter, but unit shipments remained above 30 million globally for the second straight quarter.

In a report published in July 2020 Dell’Oro revised down its expected 5% decline in broadband access equipment spending to a larger fall, of 7%. But it said then that spending would rise 5% in 2021.

 

 

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