#United States #California #Dell'Oro Group #PON Equipment #Fiber Subscribers

North American Operators Boost Investment in PON Equipment

In the latest report from Dell'Oro Group, a prominent market research firm, it is revealed that telecommunications companies in North America are making substantial investments in Passive Optical Network (PON) equipment. This surge comes as the number of fiber subscribers continues to rise, indicating a robust demand for enhanced broadband infrastructure.

Key Findings from the Report

The report indicates that the global revenue for the Broadband Access equipment market reached $4.5 billion in the second quarter of 2026, showing a slight decline of 3% year-over-year. However, North American telcos and cable operators defy this trend by significantly increasing their spending on PON equipment, reminiscent of the impressive growth seen in 2022. Jeff Heynen, Vice President at Dell'Oro Group, noted that this growth signals a strategic shift as operators rush to enhance their fiber networks amid rising equipment costs due to component shortages.

Spending Trends

The research highlights a noteworthy 26% year-over-year increase in spending on PON equipment by North American operators. Simultaneously, shipments of Cable Remote Optical Line Terminal (OLT) ports surged by an astonishing 190% year-on-year, showcasing the urgency and prioritization placed on advancing fiber optics capabilities in the region.

Residential Wi-Fi and Network Modernization

Furthermore, shipments of Residential Wi-Fi 7 routers are on a remarkable upward trajectory, climbing 62% year-over-year. This growth is primarily attributed to the influx of lower-cost dual-band models from China and Southeast Asia, alongside US operators accelerating purchases to support their multi-gigabit service offerings. Network modernization is key, with cable operators focusing on sustained investments in Remote PHY Device (RPD) and Remote OLT (R-OLT) technologies, yielding a substantial 63% increase in revenue for these platforms.

Challenges with FWA CPE

Despite the positive trends, Fixed Wireless Access (FWA) Customer Premises Equipment (CPE) shipments saw a decline of 12% year-over-year, largely due to a slowdown in new unit sales within the North American market. This reflects a complex market scenario where growth in fiber networks contrasts with challenges faced in the FWA segment.

Conclusion

The insights provided by Dell'Oro Group highlight a vibrant shift in the North American broadband landscape, driven by significant investments in PON technologies. With fiber subscriber growth sustained and operators keen to upgrade their networks, the future looks promising for telecommunications infrastructure, despite ongoing challenges in global supply chains. This proactive approach from operators signals their commitment to meeting rising consumer demands for high-speed internet access.

For more detailed insights and comprehensive statistics on the broadband access market, stakeholders are encouraged to refer to the full Dell'Oro Group Broadband Access and Home Networking Quarterly Report.

About Dell'Oro Group

Dell'Oro Group specializes in delivering market intelligence and competitive analysis across the telecommunications spectrum including security, enterprise networks, and data center infrastructure. Their in-depth reports aid businesses in making informed, strategic decisions crucial for fast-moving market dynamics.

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