While the latest ‘Cable Outside Plant Equipment [OSP] Advanced Research Report’ from Dell’Oro summarises the US market, it does provide a good indication of global OSP trends that will impact our markets in the South Pacific.
The reports notes that total OSP Cable revenue is expected to advance 14% in 2023, driven largely by continued mid- and high-split DOCSIS 3.1 projects in the North American market.
“Short-term band-splitting projects will begin to give way to longer-term DOCSIS 4.0 upgrades, particularly in North American, where operators are looking to increase capacity and keep pace with fibre ISPs,” said Jeff Heynen, Vice President and analyst with the 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.”
Additional highlights from the Report:
- Global OSP Cable revenues are projected to peak at US$1.4 billion in 2027, when the largest number of tier-one operators in North America are expected to be in the middle of their DOCSIS 4.0 upgrades.
- The North American market will remain the largest region for OSP Cable revenue, as operators in other regions either continue with DOCSIS 3.1 or increasingly overbuild with fibre.
- The DOCSIS 4.0 upgrade cycle will continue through 2030 as operators consistently expand their footprint using 1.8 GHz amplifiers, Full Duplex 1.2 GHz amplifiers, and 2 GHz taps where necessary.