What's Happening?
Harmonic has announced an expanded role in Charter Communications' network upgrade, despite reporting a year-over-year revenue decline. Charter has selected Harmonic's virtual cable modem termination system (vCMTS) for its hybrid fiber/coax (HFC) network upgrade.
The upgrade involves deploying Harmonic's 'cOS' platform and Pebble-2 remote PHY devices to enhance Charter's distributed access architecture. Harmonic's Q3 results showed a decline in broadband revenues, but the company anticipates growth in 2026 as cable operators, including Charter, advance their network upgrades.
Why It's Important?
Harmonic's involvement in Charter's network upgrade is a significant development in the telecommunications industry, as it reflects the ongoing shift towards more advanced network infrastructures. The deployment of DOCSIS 4.0 technology is expected to enhance broadband capacity and speed, benefiting consumers and businesses. This partnership also highlights the competitive landscape among technology providers vying for contracts with major telecom operators. The success of these upgrades could influence future investments in network technologies and impact the broader telecommunications market.
What's Next?
Harmonic is poised to benefit from increased spending by Charter and other cable operators on network upgrades. The company expects broadband revenue growth in 2026, driven by the adoption of DOCSIS 4.0 and fiber deployments. Harmonic's strategic priorities include potential acquisitions to strengthen its market position. As the telecommunications industry continues to evolve, Harmonic's role in these upgrades could set a precedent for future collaborations and technological advancements.
