Global PON Returns of $3 Billion in 2019 a Silver Lining for Telecom Industry

Telecom Tech Outlook | Monday, May 18, 2020

Amidst the significant revenue declines in both DSL and cable infrastructure in the dismal year 2018, the high revenue generation in 2019 came up as a silver lining in the telecommunication industry


Fremont, CA: According to the newly published report by Dell' Oro Group, the overall global revenue for PON optical line terminal (OLT) equipment was recorded $3 billion in 2019, which is 16 percent up from 2018. Dell' Oro Group is a provider of market information about telecommunications, networks, and data center IT industries. Amidst the significant revenue declines in both DSL and cable infrastructure in the dismal year 2018, these statistics came up as a silver lining in the telecommunication industry.

"Although 2019 was a challenging year for broadband access equipment vendors, with revenue dipping to levels not seen since 2012, there are positive signs that operators are committed to 10G upgrades to support premium broadband services," said Dell 'Oro Group's Jeff Heynen, senior research director, broadband access and home networking. "There will be pockets of growth in 2020, but increased competition is needed to spur additional spending."

As more and more operators moved towards the 10Gbps fibre to the home (FTTH) networks, the total XGS-PON OLT port shipments increased a massive 222 percent year over year in terms of 10G.

The total cable access concentrator revenues recorded in Q4 last year witnesses a 30 percent down year over year to $255 million. The downfall was mainly due to a slowdown in conventional Converged Cable Access Platform (CCAP) products across all regions.

The entire cable industry, except for Comcast, which is working with Harmonic on virtual CCAP, has been slow to adopt newer classes of Remote MACPHY and Remote PHY devices and virtual CCAP (vCCAP) products.

Despite Charter Communications and Comcast broadly covering up their DOCSIS 3.1 network deployments, total DOCSIS 3.1 customer premises equipment (CPE) devices rose to 6 million in the fourth quarter of last year, thus representing a 67% of the overall cable CPE shipments.

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