SOURCE: Infonetics Research

Infonetics Research

May 23, 2011 15:43 ET

Infonetics Research: Cisco widens global CMTS lead; record number of CMTS ports tempered by price declines

CAMPBELL, CA--(Marketwire - May 23, 2011) - Market research firm Infonetics Research today released excerpts from its first quarter (1Q11) CMTS and Edge QAM Hardware and Subscribers preliminary report, which tracks cable modem termination systems (CMTS), edge quadrature amplitude modulation (QAM) channels, and cable broadband subscribers.

ANALYST NOTE
"We saw record numbers of CMTS port shipments quarter-over-quarter in 1Q11, up 39% worldwide and nearly double in North America, but CMTS revenue failed to keep up due to extreme downward pricing pressure. The introduction of Cisco's 3G60 card and ARRIS' field upgrade of existing 16D CAM cards to double their capacity resulted in intense pricing competition as both vendors looked to solidify their customer bases with forward pricing in advance of the upcoming CMAP upgrade cycle. Price reductions will stabilize, and after this year, we'll see sustained revenue growth for the CMTS/CMAP market, as operators' demand for capacity will more than offset further reductions in pricing," predicts Jeff Heynen, directing analyst for broadband access at Infonetics Research.

CMTS AND EDGE QAM MARKET HIGHLIGHTS

  • Worldwide CMTS and edge QAM revenue grew 13% to $414 million in 1Q11 over 4Q10
  • Bucking its normal seasonal trends, the edge QAM hardware market grew 3% in 1Q11 over 4Q10, led by a huge bump up in North American edge QAM revenue for DOCSIS/M-CMTS applications
  • Cisco's worldwide CMTS revenue share jumped 9 percentage points to 60% in 1Q11, powered by shipments of its 3G60 cards
    • Cisco hasn't seen such market share levels in the CMTS market since early 2008, when it first introduced its Shared Port Adapter (SPA) card
  • Cisco also posted strong gains in the edge QAM hardware market, jumping ahead of BigBand in 1Q11 to take the #2 spot; Harmonic maintained its lead in the edge QAM market

REPORT SYNOPSIS
Infonetics' CMTS and Edge QAM report provides worldwide and regional vendor market share, market size and forecasts through 2015 for standard and wideband cable broadband subscribers; upstream and downstream CMTS revenue and ports; and edge QAM channels and revenue by application, including linear broadcast TV, video on demand (VOD), unicast video, switched digital video, M-CMTS and Data Over Cable Service Interface Specification (DOCSIS). The report tracks ARRIS, BigBand, Casa Systems, Cisco Systems, Ericsson, Harmonic, LiquidXStream, Motorola, RGB Networks, Sumavision, Teleste, and Vecima.

SALES

To download report prospectuses, tables of contents, highlights, etc., log in to http://www.infonetics.com/login and go to RESEARCH, then BROADBAND ACCESS.

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Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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