Open RAN Stabilizes as Cable Infrastructure Investment heats Up: A Deep Dive into BroadbandS Future
Teh telecommunications landscape is undergoing a notable shift, driven by the need for faster speeds, greater network intelligence, and more flexible infrastructure. Recent data from Dell’Oro Group paints a picture of stabilization in the Open RAN sector alongside a surge in investment in cable outside plant upgrades, signaling a dynamic period for both mobile and fixed broadband technologies. As a seasoned analyst observing these trends, let’s break down what these developments mean for operators, vendors, and ultimately, consumers.
open RAN: From Hype to Measured Growth
The Open RAN movement, spearheaded by the O-RAN Alliance as 2018, promised to revolutionize the radio access Network (RAN) by introducing openness, virtualization, and interoperability. While initial deployments in Japan and the US fueled rapid growth, the path hasn’t been without its bumps. Dell’Oro’s research reveals a roughly 40% decline in total Open RAN revenues over two years, a deceleration sharper than anticipated due to broader slowdowns in 5G investment.However, the narrative is shifting. Preliminary data indicates a positive trend: Open RAN revenues grew year-on-year in the second quarter of 2025,and were nearly flat in the first half of the year. This resurgence is attributed to easier year-over-year comparisons, increased capital expenditure (capex) on existing deployments, and growing adoption among “early majority” operators.
This isn’t a return to the initial hyper-growth, but a sign of maturation. The core principles of O-RAN – Cloud RAN, AI-driven RAN, and the Open Fronthaul interface – are now firmly embedded in the next-generation RAN roadmaps of most leading operators. Cumulative Open RAN revenues are approaching $10 billion, demonstrating a substantial, albeit evolving, market.
The Catch? Despite the progress, the vision of widespread multi-supplier RAN adoption remains limited. Dell’oro projects this segment to reach only $2-3 billion by 2029. The complexity of integrating solutions from multiple vendors, coupled with ongoing business case challenges, continues to temper enthusiasm for a fully open, disaggregated RAN. Operators are cautiously optimistic, prioritizing proven performance and reliability alongside the benefits of openness.
Cable Outside plant: A Multi-Year Upgrade Cycle is Underway
While Open RAN navigates its complexities, the cable outside plant market is poised for significant expansion. Dell’Oro’s Cable Outside Plant Equipment Advanced Research Report highlights a coming surge in demand, driven by the need to deliver faster broadband speeds and more smart networks.
The key drivers are:
1.8 GHz Amplifiers & DAA Nodes: Demand for these components will escalate later in 2025,supporting Remote PHY deployments – a crucial step in upgrading existing Hybrid Fiber-Coax (HFC) networks.
Full Duplex 1.2 GHz Amplifiers: These next-generation amplifiers are expected to enter significant volume production in 2026,further boosting network capacity.
* Docsis 4.0 upgrades: Global cable outside plant equipment revenues are projected to peak in 2027 as North American Tier 1 operators undertake large-scale upgrades to support Docsis 4.0, the latest broadband standard.North America Leads the charge
The North American market is expected to remain the dominant force in cable outside plant revenue. While operators in other regions may continue with Docsis 3.1 or explore fiber overbuilds, North American providers are committing to substantial investments in their HFC infrastructure.
Specifically,we’ll see increased deployment of Generic Access Platform (GAP) nodes in 2025 and 2026.As Jeff Heynen, Vice President of Broadband Access and Home Networking Market Research at Dell’oro Group, aptly puts it: “Tier one cable operators…are in the begining stages of a multi-year investment cycle to boost broadband speeds, while also dramatically improving the intelligence and automation capabilities of their outside plant.” This translates to significant spending on optical nodes, amplifiers, and passive equipment – taps and hardline splitters – extending through 2029.
What Does This Mean for the Future?
These trends point to a fascinating convergence. While Open RAN aims to disaggregate the mobile RAN,the cable industry is focused on maximizing the potential of existing HFC infrastructure through intelligent upgrades. Both approaches share a common goal: delivering faster, more reliable, and more adaptable networks