Cable Operators to Increase Spending on Outside Plant Equipment Amid DOCSIS 4.0 Upgrades

What's Happening?

Cable operators are projected to significantly increase their spending on outside plant equipment, including amplifiers, as they prepare for DOCSIS 4.0 and multi-gigabit speeds. According to a forecast by Dell'Oro Group, this spending is expected to peak between 2026 and 2028, generating approximately $10 billion through 2030. The forecast indicates a shift in spending patterns, with a more consistent allocation over time rather than a sharp spike. This change is attributed to the availability of new 'unified' DOCSIS 4.0 chips that support both Full Duplex (FDX) and Extended Spectrum DOCSIS (ESD). Major cable operators like Comcast and Charter are leading the charge in deploying these technologies, with significant volumes of FDX amplifiers expected to ship by 2026.

Why It's Important?

The increased investment in outside plant equipment is crucial for the cable industry as it transitions to DOCSIS 4.0, which promises enhanced network capabilities and speeds. This development is significant for both operators and consumers, as it could lead to improved internet services and competitive pricing. The shift towards unified DOCSIS 4.0 technology also highlights the industry's move towards more efficient and scalable network solutions. Companies like Broadcom, which provide the necessary silicon, and amplifier suppliers such as CommScope and Teleste, stand to benefit from this trend. However, the success of these upgrades will depend on the timely availability of new technologies and the ability of operators to manage the transition effectively.

What's Next?

As the deployment of DOCSIS 4.0 technology progresses, cable operators will need to navigate potential challenges related to technology adoption and consumer uptake. The market for Generic Access Platform (GAP) nodes is expected to accelerate, with companies like Charter championing this approach. The industry will also need to address any delays in technology availability, such as those experienced with Broadcom's unified D4.0 silicon. Stakeholders will be closely monitoring the rollout of these upgrades and their impact on the competitive landscape, particularly in North America where most of the activity is centered.