DAA upgrades driving up cable access network spending – Dell'Oro

Global telecommunications market analysis firm Dell’Oro Group has reported a significant resurgence in cable access network spending during the first quarter of 2026. The latest research indicates that total expenditures in this sector grew by 40 per cent year-on-year as service providers accelerated their network modernisation programmes. This growth is primarily attributed to a renewed focus on Distributed Access Architecture upgrades, which had previously experienced a period of slower investment.

The increase in spending reflects a strategic shift among cable operators who are seeking to enhance their competitive positioning against fibre-to-the-home deployments. By transitioning to Distributed Access Architecture, operators can move key functional elements from the headend to the edge of the access network. This decentralised approach allows for improved signal quality and higher capacity for residential and business subscribers. The hardware investments documented in the report suggest a commitment to multi-gigabit service tiers across existing hybrid fibre-coaxial footprints.

According to the data, the transition to virtualised cable modem termination systems and remote physical layer devices has become a primary driver for the current market trajectory. Many tier-one operators in North America and Western Europe reached a turning point in their procurement cycles during the initial months of the year. This resulted in a substantial uptick in orders for high-split upgrades and node segmentations that were previously postponed. The report suggests that the supply chain constraints that hampered some of these rollouts in previous years have now largely been resolved.

The shift toward these advanced architectures is also motivated by the need for operational efficiency and reduced power consumption within the central office. Modern remote equipment requires less cooling and physical space than legacy centralised hardware, offering long-term cost advantages for large-scale providers. Furthermore, the adoption of internal software-defined networking tools is allowing operators to manage these distributed components with greater precision.

This renewed investment cycle is expected to continue throughout the remainder of the calendar year as more regional providers initiate their upgrade phases. Analysts suggest that the procurement of next-generation infrastructure will remain robust as cable companies prepare for future standard migrations. The ongoing transformation of the access network will likely serve as a critical foundation for sustaining data demand and improving overall service reliability in a highly competitive global broadband market.