Broadband Access Equipment Forecast to Rebound in 2H20 After Pandemic Slowdown
There’s increased momentum for building broadband networks, but it looks like the pandemic in the first half of the year has slowed the market for broadband electronics. A broadband access equipment forecast from the Dell’Oro Group calls for revenues to increase in the second half of 2020 after declining 15% in the first quarter of the year compared to the same period a year earlier.
Researchers attributed the decline to the COVID-19 pandemic and resulting supply chain issues.
Total broadband access equipment revenue for the first three months of this year was $2.5 billion. The research firm noted that the first quarter is typically a slow period, with sales typically stronger during other quarters of any calendar year.
Broadband Access Equipment Forecast
Among the report’s other findings:
- Total cable access concentrator revenue decreased 22% to $211 million on year-over-year basis, driven by a slowdown in CCAP license purchases in North America.
- However, total DOCSIS 3.1 CPE shipments improved significantly to $5.8 million, representing 67% of total cable CPE shipments.
- PON ONT unit shipments saw a 15% decrease as a result of the COVID-19 pandemic.
“The first half of 2020 will give way to a sustained rebound in broadband equipment spending in the second half of the year,” said Jeff Heynen, Dell’Oro Group senior research director, broadband access and home networking, in a prepared statement. “The need to expand residential broadband speeds and availability will ultimately win out over the current macroeconomic slowdown.”