What's Happening?
Cable access network spending has seen a significant increase, driven by the resurgence of distributed access architecture (DAA) upgrades. According to the Dell'Oro Group, spending in this sector rose by approximately 40% in the first quarter of 2026.
This growth follows a period of stagnation in 2025, as operators awaited the release of new DOCSIS 4.0 chips from Broadcom, which support up to 1.8GHz of hybrid fiber/coax (HFC) network capacity. These chips are now being integrated into new products and used to retrofit existing remote PHY devices and nodes. The renewed investment in DAA, particularly linked to Charter Communications' HFC network upgrade program, has been a major factor in the increased spending. Key suppliers such as Harmonic, Vistance Networks/Aurora Networks, and Vecima Networks have also reported strong performances, with Harmonic capturing 48% of the cable access network revenues in Q1.
Why It's Important?
The surge in cable access network spending is crucial for the telecommunications industry as it indicates a robust demand for enhanced broadband infrastructure. This investment is expected to drive record revenues for remote PHY devices and virtual cable modem termination systems throughout 2026. The upgrades to DOCSIS 4.0 technology, led by major operators like Comcast and Charter, are essential for maintaining competitive edge against fiber, fixed wireless access, and satellite broadband providers. The advancements in network capacity and speed are likely to benefit consumers with improved internet services, potentially leading to increased customer satisfaction and retention. However, the decline in DOCSIS customer premises equipment shipments, partly due to regulatory challenges, highlights ongoing challenges in the sector.
What's Next?
As the year progresses, continued investment in DAA and DOCSIS 4.0 upgrades is anticipated. Charter Communications plans to expand its DOCSIS 4.0 deployment to cover a significant portion of its HFC footprint, with potential acceleration in the Cox Communications area post-merger. Other operators may also adopt DOCSIS 4.0 in competitive regions. The Federal Communications Commission's ban on new, foreign-made routers could impact DOCSIS CPE shipments, although recent waivers may provide some relief. The industry will likely monitor these regulatory developments closely, as they could influence future investment and deployment strategies.
