Cable and Fiber ISPs Brace for a Spending Surge in 2028 as Reported by Dell'Oro Group
In a recently published report, the Dell'Oro Group has shed light on the evolving landscape of broadband access in North America and beyond. The report forecasts a modest average annual growth rate of 0.5% for the Broadband Access Equipment market, expected to rise dramatically until it peaks in 2028. This surge is primarily propelled by advancements in DOCSIS 4.0 technologies and a strategic push towards fiber optics by cable and fiber Internet Service Providers (ISPs).
As the report highlights, the ongoing upgrade projects for DOCSIS 4.0 and XGS-PON are advancing, yet they face challenges due to rising costs in key components necessary for equipment manufacturing. Jeff Heynen, a key figure at Dell'Oro, pointed out that the increases in residential Customer Premises Equipment (CPE) costs could widen the gap in terms of connectivity in households, thus potentially slowing down expansion plans in the sector. ISPs are being forced to evaluate various options, from scaling back on premium Wi-Fi 7 gateways to expanding refurbishment programs to attract and retain customers while ensuring service quality.
The report also notes that the revenue generated from Passive Optical Network (PON) equipment is projected to increase at a healthy annual rate of 1.6% between 2026 and 2030. This growth is expected to be largely driven by deployments of XGS-PON in regions such as North America, Europe, the Middle East, and Africa (EMEA), along with Fiber to the Room (FTTR) initiatives gaining traction in China.
Furthermore, the revenue for Cable Distributed Access Equipment—which includes a range of innovative technologies such as Virtual CCAP, Remote PHY Devices, and Remote OLTs—is predicted to peak during 2028 and 2029. This outlook is based on operators' commitment to continuing their DOCSIS 4.0 and early fiber deployments, marking a significant investment in infrastructure and technology.
Interestingly, while the expected total unit shipments for residential routers will be lower, the revenue for next-generation items such as Wi-Fi 7 routers is projected to climb steadily through 2030, thanks to higher average selling prices (ASPs). This illustrates the ongoing shift towards premium devices in the consumer market, emphasizing the need for ISPs to keep up with consumer demands for improved services and capabilities.
The insights provided in the Dell'Oro report offer a comprehensive view of the Broadband Access market, detailing essential metrics such as revenue figures, market trends, and projections for equipment types ranging from PON to DSL and Fixed Wireless technologies. With the telecommunications and data center sectors continually evolving, understanding these trends will be crucial for stakeholders looking to navigate the complexities of this rapidly changing industry.
As part of this analysis, the Dell'Oro Group remains a leading research firm, specializing in competitive analysis within the telecommunications, security, and data center markets. Their quantitative and qualitative data assist businesses in making informed decisions that align with market dynamics. For more information about their findings or methodologies, interested parties are encouraged to reach out to the Dell'Oro Group directly at their official contact points.
The future of broadband access is indeed being reshaped by these significant spending trends, creating promising opportunities but also presenting distinct challenges for ISPs aiming to increase coverage and service quality in an increasingly competitive landscape.
As the report highlights, the ongoing upgrade projects for DOCSIS 4.0 and XGS-PON are advancing, yet they face challenges due to rising costs in key components necessary for equipment manufacturing. Jeff Heynen, a key figure at Dell'Oro, pointed out that the increases in residential Customer Premises Equipment (CPE) costs could widen the gap in terms of connectivity in households, thus potentially slowing down expansion plans in the sector. ISPs are being forced to evaluate various options, from scaling back on premium Wi-Fi 7 gateways to expanding refurbishment programs to attract and retain customers while ensuring service quality.
The report also notes that the revenue generated from Passive Optical Network (PON) equipment is projected to increase at a healthy annual rate of 1.6% between 2026 and 2030. This growth is expected to be largely driven by deployments of XGS-PON in regions such as North America, Europe, the Middle East, and Africa (EMEA), along with Fiber to the Room (FTTR) initiatives gaining traction in China.
Furthermore, the revenue for Cable Distributed Access Equipment—which includes a range of innovative technologies such as Virtual CCAP, Remote PHY Devices, and Remote OLTs—is predicted to peak during 2028 and 2029. This outlook is based on operators' commitment to continuing their DOCSIS 4.0 and early fiber deployments, marking a significant investment in infrastructure and technology.
Interestingly, while the expected total unit shipments for residential routers will be lower, the revenue for next-generation items such as Wi-Fi 7 routers is projected to climb steadily through 2030, thanks to higher average selling prices (ASPs). This illustrates the ongoing shift towards premium devices in the consumer market, emphasizing the need for ISPs to keep up with consumer demands for improved services and capabilities.
The insights provided in the Dell'Oro report offer a comprehensive view of the Broadband Access market, detailing essential metrics such as revenue figures, market trends, and projections for equipment types ranging from PON to DSL and Fixed Wireless technologies. With the telecommunications and data center sectors continually evolving, understanding these trends will be crucial for stakeholders looking to navigate the complexities of this rapidly changing industry.
As part of this analysis, the Dell'Oro Group remains a leading research firm, specializing in competitive analysis within the telecommunications, security, and data center markets. Their quantitative and qualitative data assist businesses in making informed decisions that align with market dynamics. For more information about their findings or methodologies, interested parties are encouraged to reach out to the Dell'Oro Group directly at their official contact points.
The future of broadband access is indeed being reshaped by these significant spending trends, creating promising opportunities but also presenting distinct challenges for ISPs aiming to increase coverage and service quality in an increasingly competitive landscape.
Topics Telecommunications）
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