CommScope is still bullish on virtualized Distributed Access Architecture (DAA), DOCSIS 4.0, and the rest of the fancy new tech being built for cable's hybrid fiber/coax (HFC) network of the future. But just like everyone else in this crazy pandemic era, it's just going to have to wait.
The technology vendor reported a 32% sales decline for its Network & Cloud unit to $366 million, with cable operator clients holding off on major virtualization/DAA investments to their networks, in favor of node splits and other short-term solutions that are helping them get through the current spike in broadband usage wrought by pandemic-era sheltering in place mandates.
Speaking to MCN just before CommScope’s May 7 earnings call, Tom Cloonan, the company’s broadband networks CTO, said operator clients are engaged in activities such as node splits and adding additional channels to already purchased Converged Cable Access Platform (CCAP) hardware, activities that generate smaller sales of additional software licenses.
After Network & Cloud sales “bottomed out” in 2019, CommScope had expected to see the beginnings of a rebound in Q1. But as with everything else, the pandemic has changed everything.
“With underlying consumer bandwidth demand continuing to grow, coupled with our investments in virtualized and distributed access architecture platforms, we remain in a strong position to guide operators through the 10G network infrastructure investments that they will deploy within the coming decade,” CommScope CFO Alexander Pease told investors.
Overall, CommScope saw net sales decline 18% to $2.03 billion.