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Fiber Broadband Spending Remains Strong, Despite Supply Chain Constraints

Fiber optic
(Image credit: Pixabay)

REDWOOD CITY, Calif.—Despite ongoing supply chain issues, fiber deployments boosted global revenue for the broadband access equipment market to $4.4 billion in Q1 2022, a 14% bounce from Q1 2021, according to a new report from Dell’Oro Group. 

The spending growth comes at a time when the U.S. government has been providing subsidies for rural broadband network improvements, 5G fixed wireless services have been gaining traction and operators have been speeding up their fiber deployments to attract subs in an increasingly saturated broadband market. 

Growth continues to come from PON (passive optic networking) equipment and fixed wireless CPE (consumer premises equipment), as service providers expand their broadband availability and speeds, Dell’Oro reported. 

"Despite all the challenges with supply chains, logistics, and labor, service providers continue to invest heavily to expand their fiber broadband networks, particularly in North America" noted Jeff Heynen, vice president, broadband access and home networking at Dell'Oro Group. 

"Many of these deployments are to deliver multi-gig services, as operators look to stay one step ahead of their competitors" explained Heynen.

The report also highlighted the growing importance of 5G. Total fixed wireless CPE unit shipments reached 3.8 million units in the quarter, with 5G Sub-6GHz units showing the fastest growth.

In addition, the report found that total cable access concentrator revenue increased 5% year over year to $257 million. 

Finally, solid growth in Distributed Access Architecture (DAA) deployments help offset declines in traditional CCAP (converged cable access platforms) licenses, the researchers reported. 

George Winslow is the senior content producer for TV Tech. He has written about the television, media and technology industries for nearly 30 years for such publications as Broadcasting & Cable, Multichannel News and TV Tech. Over the years, he has edited a number of magazines, including Multichannel News International and World Screen, and moderated panels at such major industry events as NAB and MIP TV. He has published two books and dozens of encyclopedia articles on such subjects as the media, New York City history and economics.