What's Happening?
Cable operators are expected to significantly increase spending on outside plant equipment, including amplifiers, as they prepare for DOCSIS 4.0 and symmetrical multi-gigabit speeds. According to Dell'Oro Group's forecast, this spending will peak between 2026 and 2028, generating approximately $10 billion through 2030. The forecast indicates a shift in spending allocation, with a more consistent flattening over time rather than a sharp spike. This change is attributed to the availability of new 'unified' DOCSIS 4.0 chips for amplifiers and nodes, which support both Full Duplex (FDX) and Extended Spectrum DOCSIS (ESD) specifications. Comcast favors FDX, while other operators pursue ESD. The market for Generic Access Platform (GAP) nodes is also expected to accelerate, with Charter Communications leading the charge.
Why It's Important?
The anticipated increase in spending on outside plant equipment is crucial for the cable industry as it transitions to DOCSIS 4.0 technology. This upgrade will enable cable operators to offer faster and more reliable internet services, meeting growing consumer demand for high-speed connectivity. The deployment of DOCSIS 4.0 is particularly significant for North American operators like Comcast, Charter, and Cox Communications, who are already planning or implementing these upgrades. The shift to DOCSIS 4.0 could enhance competition among cable providers, potentially leading to better service offerings and pricing for consumers.
What's Next?
As the DOCSIS 4.0 upgrade activity intensifies, cable operators will continue to invest in new technologies and infrastructure to support these advancements. The market for amplifiers and nodes will likely see increased activity, with suppliers like CommScope, Antronix, and ATX Networks playing key roles. Smaller and midsized operators may also consider adopting DOCSIS 4.0 as the technology matures, although many remain undecided. The industry will closely monitor the rollout and performance of these upgrades to assess their impact on service delivery and customer satisfaction.
