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Broadband Equipment Spending Downturn Likely Again This Year: Dell'Oro

Last year's slowing in broadband network and service spending will likely continue well into 2024, Dell'Oro Group's Jeff Heynen blogged Thursday. Total broadband equipment spending likely declined around 10% in 2023, and projections indicate this year will see an additional…

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5% year-over-year drop due to interest rate increases, he said. That would put 2024 spending at around $16.5 billion, roughly equal to 2021 levels, he said. However, 2025 could see a rebound as the broadband equity, access and deployment program and other subsidization efforts start flowing to broadband equipment suppliers, he said. Heynen said it's likely operators will deploy dozens of Wi-Fi 7 residential routers and broadband customer premises equipment models by year's end. Wi-Fi 7 products may be seen as differentiators in a crowded broadband market and could ease marketplace confusion over Wi-Fi 6 vs. Wi-Fi 6E.