Telecommunications and cable TV providers drove up spending for broadband hardware by 11 percent in the third quarter, according to new figures from Synergy Research Group.

Sales hit $1.5 billion, some $16.5 million more than in the second quarter.

Alcatel leads in market share with 21.7 percent of sales followed by Cisco (9.4), Siemens (8.4), NEC (7.4) and Thomson (5.5).

“Telcos continue to deploy advanced elements in central office(s) to handle multimedia applications such as multiparty gaming and video conferencing,” Synergy said in its report. “Cable companies are aggressively deploying voice over Internet Protocol to round out their voice and video offerings.”

Another sales driver is video over digital subscriber line (DSL) services, Synergy said.

The firm cited five sales drivers: price/performance; technology; content; service availability; and regulation.

Synergy Research: