Cable-company spending on network equipment is dropping as major providers like Comcast and Charter finish up their nationwide DOCSIS 3.1 rollouts.
Equipment vendors that sell to cable companies such as Arris/CommScope and Casa Systems are reporting drops in cable-related revenue.
Light Reading detailed the situation this week:
Total cable access network-related revenues plummeted 38 percent in Q1 2019, to $275 million, versus the year-ago period, driven by a "strong slowdown" on capacity purchases by MSOs and an ongoing delay in deployments of new distributed access architectures, according to new data from Dell'Oro.
Cable companies will certainly continue investing in their networks and customer equipment, but cable-company suppliers are reporting spending declines.
"[T]he recent, significant declines in capital spending by certain cable providers is having a pronounced impact on Arris," CommScope's first-quarter earnings announcement said, referring to its subsidiary that sells DOCSIS 3.1 equipment and other network gear.