This article originally appeared in Light Reading
Whole international income for the broadband entry tools sector dropped 9%, to $17.5 billion, in 2023 versus the prior yr, in keeping with Dell’Oro Group.
That capped off a troublesome yr that was marked by operators hitting the pause button as they labored down stock that was constructed up throughout earlier phases of the pandemic. The general affect was largely pushed by provide and demand, Dell’Oro VP Jeff Heynen stated.
Cable tools spending additionally dropped 3% in 2023, although spending on distant PHY gadgets – key parts of the business’s transfer towards a distributed entry structure (DAA) – jumped 21%.
“Given all of the challenges we had and in addition with provide and every little thing on improve technique… it was a reasonably steady, resilient market [for cable],” Heynen stated.
DAA exercise nonetheless ramping up
DAA deployments, which assist operators ship improved sign high quality whereas additionally serving as a stepping stone towards DOCSIS 4.0, had been a vivid spot for the cable infrastructure market in 2023, in keeping with Heynen.
Distant PHY gadgets for DAA loved their strongest quarter in This fall 2023, he stated, including: “That development is not stopping anytime quickly.”
Amongst main operators, Comcast has deployed about 140,000 DAA nodes, up from the 120,000 that the operator reported final fall, Elad Nafshi, EVP and chief community officer at Comcast, stated final week at Mild Studying‘s Cable Subsequent-Gen occasion in Denver. Cox Communications, which began its DAA journey about 5 years in the past, has accomplished such upgrades throughout about 70% of its community, David Ririe, Cox’s senior director, entry engineering, said on the occasion.
The marketplace for digital cable modem termination methods (vCMTSs) has but to take off. Comcast is making progress with its deployment with companion Harmonic, with Nafshi noting final week that Comcast has deployed greater than 1,000 vCMTS bodily factors of deployment (PPODs).
However it’s clear that suppliers anticipate exercise to choose up as extra operators concentrate on virtualizing their CMTSs by operating software program on business off-the-shelf servers and pivoting away from purpose-built CMTS chassis. There at the moment are 4 identified vCMTS suppliers. Along with Harmonic, CommScope and Casa Techniques, Vecima Networks introduced it’s coming into the vCMTS recreation.
“Finally, they [cable operators] need to transfer to a vCMTS as a result of there are further advantages there as effectively,” Heynen stated.
In different classes, spending on passive optical networking (PON) tools dropped 7% in 2023 versus 2022. That is partly on account of a decline in spending on PON optical line terminals (OLTs) as some operators slowed the tempo on buildouts on account of increased labor prices and the upper price of capital.
Nevertheless, spending on fastened wi-fi entry (FWA) buyer premises tools (CPE) climbed 7%, reflecting final yr’s surge in FWA subscriber development.
DOCSIS 4.0 CPE rising
Spending on cable buyer premises tools (CPE) additionally declined, with items dropping to 30.3 million in 2023 versus 36 million in 2022, according to Dell’Oro. One purpose is a slowdown in cable broadband subscriber development.
On the community facet, suppliers are hoping to see spending on CPE perk up as DOCSIS 4.0-capable gadgets begin to weave into the market. Comcast has rolled D4.0 into elements of three markets (Colorado Springs, Philadelphia and Atlanta) and is providing service to subs by pairing a DOCSIS 3.0 modem with a Wi-Fi router. Comcast can be prepping the launch of the XB10, a brand new D4.0-based modem/router combo that options Wi-Fi 7. Forward of DOCSIS 4.0 community upgrades, some operators are anticipated to deploy D4.0 modems on their current DOCSIS 3.1 networks.
With D4.0 modem shipments getting underway in This fall 2023, Heynen estimated that items within the “low 1000’s” had been shipped final yr.
“I anticipate it to ramp up,” Heynen stated, noting that he expects about 3 million DOCSIS 4.0 modems to be shipped in 2024. Although DOCSIS 4.0 modems will price extra, they’re going to have a protracted lifespan if they’re deployed on D3.1 or D4.0 networks, he stated.
Coming DOCSIS 4.0 gateways are anticipated to be outfitted with Wi-Fi 7 know-how.
Wi-Fi 6E, the primary model of Wi-Fi to incorporate characteristic entry to spectrum within the 6GHz band, dominated 2023, however it would barely outpace Wi-Fi 7 from a income perspective in 2024, Heynen predicted.
He additionally expects fuller Wi-Fi 7 substitution to get underway in 2024 and carry into 2025.
