A recent report from Dell’Oro Group predicts that sales of PON equipment for FTTH deployments, cable broadband access equipment, and fixed wireless customer-premises equipment will all increase from 2022 to 2026. According to the group, this is driven by service providers looking to expand the reach of their fixed broadband services to customers’ homes as well as the quality and reliability of those services within homes.
“I think the biggest surprise was the resilience of PON equipment spending throughout the forecast period adds Jeff. “We are seeing so many operators jump in and make commitments to passing millions of homes and businesses through the end of the decade. When you combine that demand with the current shortages in components and labour, it will extend the spending cycle beyond the level of our previous expectations.”
Jeff sees two factors in particular really driving growth beyond keeping up with the competition.
- Government subsidization of fibre networks to bridge the digital divide and connect rural and underserved communities.
“These funding efforts—particularly in the US, but also in countries throughout Europe, Southeast Asia, and South America, will continue to pour massive amounts of money into the broadband market over the next 3-5 years.”
- Increased valuations of fibre networks.
“For years, owning network infrastructure was thought to be bad, since most revenue was being generated from over-the-top services. But the tide has turned and owning fibre access networks is very lucrative. Private operators are able to use the increased valuations of their fibre networks to generate more capital to expand their buildouts.”
