What's Happening?
Cable access network spending has seen a significant increase, with a 40% jump in the first quarter of 2026, according to Dell'Oro Group. This surge is attributed to the deployment of distributed access architecture (DAA) upgrades, particularly the implementation
of Broadcom's new DOCSIS 4.0 chips. These chips support up to 1.8GHz of hybrid fiber/coax (HFC) network capacity and are being used to retrofit remote PHY devices and nodes. The resumption of DAA investments, including Charter Communications' HFC network upgrade program, has been a major factor in this spending increase. The trend is also reflected in the performance of cable access suppliers like Harmonic, Vistance Networks/Aurora Networks, and Vecima Networks, which have reported strong revenues. However, inside the home, DOCSIS customer premises equipment shipments have declined by 5%, partly due to broadband subscriber losses and regulatory challenges.
Why It's Important?
The increase in cable access network spending highlights the ongoing evolution and expansion of broadband infrastructure in the U.S. The deployment of DOCSIS 4.0 technology is crucial for cable operators to remain competitive against fiber and fixed wireless access providers. This technological advancement allows for higher network capacity and improved service delivery, which is essential as consumer demand for high-speed internet continues to grow. The investments in network upgrades also indicate a strategic shift among cable operators to enhance their service offerings and expand their market reach. This development could lead to increased competition in the broadband market, potentially benefiting consumers with better service options and pricing.
What's Next?
As the year progresses, cable access network spending is expected to continue its upward trajectory, driven by further deployments of DOCSIS 4.0 technology. Charter Communications plans to expand its D4.0 deployments to cover a significant portion of its HFC footprint, and other operators may follow suit in areas facing intense competition. The ongoing upgrades could lead to record revenues for remote PHY devices and virtual cable modem termination systems. Additionally, the Federal Communications Commission's regulatory decisions, such as the ban on new foreign-made routers, may influence future trends in DOCSIS equipment shipments and network strategies.
