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Cable Operators Expected to Spend $10B on Outside Plant Equipment Through 2030

June 25, 2024
Total spend expected to peak in 2027, driven by new DAA node, amplifier, and tap upgrades.

According to a recently published report from Dell’Oro Group, total Cable Outside Plant Equipment revenues are expected to increase to $972 M in 2024, up 15 percent year-over-year (Y/Y), driven largely by continued mid- and high-split DOCSIS 3.1 and DAA (Distributed Access Architecture) projects in the North American market, which are driving purchases of new DAA Nodes to support Remote PHY deployments.

The market will heat up later this year as Full Duplex 1.2 GHz and 1.8 GHz amplifiers will begin shipping, with significant volumes expected in 2025.

“The current focus on Remote PHY and band splitting will lead to longer-term DOCSIS 4.0 upgrades, particularly in the North American and select European markets, where operators are looking to increase capacity and keep pace with fiber ISPs,” said Jeff Heynen, Vice President of Broadband Access and Home Networking market research at Dell’Oro Group.

“These upgrades will result in a significant increase in spending on optical nodes, amplifiers, and passive equipment, including taps and hardline splitters, through 2028,” added Heynen.

In a survey by ATX Networks published last year, 48% of cable operators plan to upgrade to DOCSIS 4.0 in their HFC networks by the end of 2025.