Service providers continue to invest on broadband access equipment, with global revenue increasing to $3.4 billion in the fourth quarter 2018, up 8% from the same period in 2017, according to a recent Dell'Oro Group report.
With 5G's arrival, telcos are opening their network budgets, said Jeff Heynen, research director for Broadband Access and Home Networking at Dell'Oro Group. Both 2.5 Gbit/s GPON and 10 Gbit/s EPON saw year-over-year increases, especially in China which is standardizing on 10 Gbit/s EPON, he said. Total PON ONT unit shipments increased 6%, driven by strong demand for 2.5 Gbit/s GPON units in China and the Asia-Pacific region, in general.
"The 10-gig EPON generation is now starting to hit the market in decent, measurable… and that will definitely continue. It really started to pick up in the second half of last year," Heynen told Broadband World News. "A lot of it is coming from China, but you have growing deployments of it in other parts of the world now, too. I really think XG-PON is the 10-gig, non-EPON technology that's going to win-out here. Anything that doesn't use [expensive] coherent optics or multiple wavelengths for residential apps, where margins are lower, those are the type of technology you want."
Service providers' spending on total DSL port shipments increased 16% year-over-year, with VDSL ports growing 13% and Gfast ports increasing 232%, according to the 4Q 2018 Broadband Access Quarterly Report.
Telco spending offset "surprising weakness in cable CCAP spending," which Heynen attributed to MSOs' delayed capacity purchases as they decided how to advance with distributed access architectures (DAA).
With most cable operators having recently wrapped up or neared completion of DOCSIS 3.1 deployments, they seem more loathe to begin heavily investing in the next necessity. But soon MSOs will move beyond investigating DAA now many recognize the myriad benefits, including increased network capacity, simplified outside plant maintenance and node evolution with Remote PHY, Remote MAC-PHY and Remote 10G EPON OLT, said Heynen.
As a result of a slowdown in CCAP license purchases in North America, total cable access concentrator revenue decreased 18% in 2018 versus 2017, dropping to $380 million, Dell'Oro's report said.
More than a half-million Irish residents expected to have fiber broadband by 2020. But Ireland's National Broadband Plan has not even begun — and government officials today postponed any agreement again.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.
Just when you thought the answer to your next technology direction question was clear, the noise around multiple new technology options fills the Internet and airwaves. Multiple 5Gs are being deployed; there's CableLabs' 10G initiative; the ITU and IEEE are toiling around 50G PON – and we haven’t even talked about Wi-Fi6 yet! Is any of this real, do you have to pay attention or can you just let the dust settle and then decide?
Since waiting is often not the best option, let’s demystify technology options, their impact on your business, and how to prepare for whatever the future brings.
In this webinar, Service Providers will learn:
Current state of 5G and how it affects everyone, not only mobile network providers.
Latest technologies being developed and how they will benefit their networks and subscribers.
How to prepare their networks for the future – whatever it may hold.