The global broadband access market wasn't spared by the pandemic in the first quarter of 2020, as revenues in the sector dropped 15%, to $2.5 billion, versus the year-ago quarter, according to Dell'Oro Group.
The decline spilled into the cable access "concentrator" market, which includes DOCSIS infrastructure elements such as Converged Cable Access Platform (CCAP) cores and chassis, virtual CCAP licensing and distributed access architecture (DAA) nodes and modules. Revenues in that category declined 22%, to $211 million, driven by a slowdown in CCAP license purchases in North America, Dell'Oro said.
On the bright side, total shipments of DOCSIS 3.1 consumer premises equipment (CPE) rose to 5.8 million, representing 67% of total cable CPE shipments. That number is poised to reach 70% by the end of 2020, predicts Jeff Heynen, senior research director, broadband access and home networking at Dell'Oro.
He attributed the rise in D3.1 CPE in part to device deployments in support of newly upgraded DOCSIS 3.1 networks and from operators wanting to seed the market with D3.1 devices ahead of network upgrades.
Heynen also expects Q2 cable access revenues to rebound a bit in the second quarter as cable operators boost upstream capacity by purchasing additional channel capacity on traditional CCAPs and move ahead with mid-split and high-split projects that expand the amount of spectrum dedicated for the cable network upstream.
Over the next two years, approximately 60% of service providers (both large and small) will adopt virtualization on a wide scale across their networks, according to the latest survey report from Ovum. Why are providers making these moves? Is there an easy way to start?
Learn how and why service providers are using virtualization to transform their networks. This webinar will look at how providers are leveraging virtualization to create more flexible and agile networks while also providing a better customer experience. Expert speakers from netElastic and Heavy Reading will address the industry drivers for network virtualization, the benefits that can be realized, the challenges to face and the results of virtualization being achieved by providers today.
Key topics will include:
Current network infrastructure and the move to virtualization
Benefits and challenges of network virtualization
How providers can get started
Service provider success stories: the decision to virtualize, the solution, and results