TelecomReport: Cable's virtualization drives down traditional hardware revenue

The cable industry's move to virtualization is driving down traditional hardware revenue at a faster clip, according to a report by Dell'Oro Group. While the cable industry has made a slower move to virtualization than the telco space, some operators, such as Comcast, are starting to reap the rewards, but that means they are spending their capex budgets elsewhere. According to Dell'Oro Group, sales of cable broadband access equipment will decrease, with a 2% compound annual growth rate (CAGR) from 2019 to 2024.The current virtualization that is taking place in the cable industry's network infrastructures will extend to other equipment areas, which will further reduce traditional hardware revenue.