Q3 Broadband Access Equipment Revenues Plummet by 14%

According to Dell'Oro, the Q3 revenue for the Broadband Access equipment market experienced a significant decline of 14% year-on-year, reaching $4.1 billion. This decrease in revenue can be attributed to various factors affecting different regions.

Fixed Wireless CPE Growth in North America

Despite the overall decline, the only segment that saw revenue growth was Fixed Wireless CPE. This growth was primarily driven by North American operators who continued to expand their 5G Sub-6GHz subscriber bases. The demand for Fixed Wireless CPE in this region contributed to the positive revenue trend.

"The inventory alignment that began in North America has now migrated to Europe and Latin America, resulting in significant year-on-year declines in equipment spend," stated Jeff Heynen, the Vice President of Dell'Oro. This shift in inventory alignment impacted the revenue performance in these regions.

Additionally, Heynen explained that Chinese operators are increasing their purchases of PON ONTs to support the growing Fiber-to-the-room (FTTR) deployments. This acceleration in purchases by Chinese operators contributed to the overall revenue performance in the market.

Growth in Fixed Wireless CPE Unit Shipments

Total Fixed Wireless CPE unit shipments experienced a modest 1% quarter-on-quarter growth. This growth was mainly driven by the increasing demand for indoor 5G Sub-6GHz units. The shipment of these units reached just below 1.3 million, marking the second-highest number on record.

Decline in Cable Access Concentrator Revenue

On the other hand, the total revenue for cable access concentrators witnessed a significant decline of 18% year-on-year, amounting to $197 million. This decline can be attributed to the slowdown in Remote PHY devices and Virtual CMTS platforms. Cable operators relied on their existing inventories, resulting in a decrease in equipment spend.

Remote OLT Revenue Performance

While the overall revenue for Remote OLT (R-OLT) showed a year-on-year increase, it experienced a decline compared to the previous quarter. The performance of Remote OLT revenue indicates a mixed trend in the market.