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Cable CPE shipments hit 20-year low amid subscriber losses

According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, total global revenue for the Broadband Access equipment market decreased to $4.1 B in 1Q 2024, down 12 percent year-over-year (Y/Y). North American broadband providers reduced their spending by 25 percent Y/Y, as continued subscriber churn, excess inventory, and stubbornly high labor costs continue to put a damper on new equipment purchases.

“The North American broadband market is in the midst of a fundamental shift in the competitive landscape, which is having a significant impact on broadband equipment purchases,” said Jeff Heynen, Vice President with Dell’Oro Group. “In particular, cable operators are trying to navigate mounting, but predictable, broadband subscriber losses with the need to invest in their networks to keep pace with further encroachment by fiber and fixed wireless providers,” explained Heynen.

Additional highlights from the 1Q 2024 Broadband Access and Home Networking quarterly report:

  • Total PON equipment spending was down 9 percent from 1Q 2023, driven by a 22 percent decline in spending on PON OLTs.
  • Spending on Fixed Wireless CPE increased 29 percent in 1Q 2024, driven once again by strong growth in 5G Sub-6 Ghz unit shipments in North America.
  • Spending on DOCSIS infrastructure plummeted 24 percent Y/Y, with spending on Remote OLTs and vCMTS licenses seeing the biggest declines.
  • Wi-Fi 6E and Wi-Fi 7 Router and CPE unit shipments continue to show significant Y/Y increases.

CT Bureau

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