January 11, 2024 | Jeff Heynen, Dell'Oro Group
2024 Outlook: Broadband Market Faces Challenge -- 2023’s broadband spending slowdown will likely persist well into 2024. Total spending on broadband equipment in 2023 is expected to show a decline of around 10%. Early projections for 2024 indicate an additional 5% year-over-year decrease, as the lagging impact of interest rate increases to curb inflation will be felt more acutely. This additional 5% decrease would put total spending to around $16.5 B—roughly equal to 2021 spending levels.
The silver lining here is that very early signals regarding 2025 show a return to growth, as BEAD and other subsidization efforts begin to trickle down to broadband equipment suppliers.
4 replies (most recent on top)
We can’t take another year of falling growth in CCS. I’m afraid we won’t survive until a possible turnaround in 2025.
I agree that the CS fat will be working hard to convince Vantiva that they are essential to the success of the combined organisation going forward. I expect Vantiva to see through the guff based on their experience as a struggling Technicolor spinoff fighting to survive. I think Leopold will see through the guff and will not opt to keep fat over hands-on experience who actually know how to make products on time, on budget. We all know that if you want schedule slip, budget over-run, all that is required is to let loose the power point creators on a project:)
Nice idea. However it is the higher cost fat that will be interacting with vantiva. You can just imagine the spin going on as they try to justify their continued employment. You are just a number to these guys, they will transfer your work to somewhere lower cost to save themselves. It doesn't matter if the folk on the other end can carry on where you left off. Costs have been saved
I just hope Vantiva employ fully functioning BS detectors
I think that Vantiva will be paying close attention to the market forecasts when deciding how many of their newly acquired HN employees they will keep. I can see them cutting higher cost fat while keeping those employees who actually knows how to make products on time and on budget. Put it this way, customers pay for quality products, not for colourful power point charts!