SOURCE: Infonetics Research

February 20, 2009 18:39 ET

Record high year for cable broadband market; Comcast to pass 65% of homes with DOCSIS 3.0 in 2009

CAMPBELL, CA--(Marketwire - February 20, 2009) -


Report: Cable Broadband Aggregation Hardware and Subscribers (4Q08 edition)

Firm: Infonetics Research

Analyst: Jeff Heynen, Directing Analyst, Broadband and Video

Published: February 19, 2009

ANALYST NOTE

"The cable broadband market posted a record year at $1.2 billion in worldwide revenue as the long-term DOCSIS 3.0 strategy trumped short-term economic concerns and operators upgraded or bought ports in record numbers. Normally, vendor revenue decreases significantly in the quarters or year following heavy port investment, but 2009 will be a different story. Yes, revenue is going to dip, but not nearly as much as one would normally expect, because cable operators are going to continue purchasing CMTS and universal edge QAM equipment, just at a slightly slower pace. With the telcos breathing down their necks, cable operators aren't about to roll over and sacrifice the tremendous gains they've made in broadband and telephony subscribers."

Jeff Heynen, Directing Analyst - Broadband and Video, Infonetics Research


REPORT HIGHLIGHTS

--  2008 was a banner year for the cable broadband hardware market (CMTS
    and universal edge QAMs, or UEQs), worldwide revenue for which jumped
    35% from the previous year to $1.2 billion, led by aggressive
    deployments of CMTS downstream ports to support channel bonding

--  For the quarter, the cable broadband hardware market increased just 3%
    in 4Q08 to $275 million, on the heels of a 28% decrease in 3Q08

--  The economic uncertainty and decrease in housing starts in the US
    contributed to the flat quarter, but will have more of an impact
    throughout 2009 as cable operators pull back on downstream port
    rollouts until subscribers are ready to spend again and upgrade their
    broadband services

--  Despite the economic uncertainty, cable operators have three strategic
    goals that will sustain their CMTS and UEQ investments during the
    downturn:
      --  Expanding DOCSIS 3.0 footprint
      --  Transitioning from T-CMTS and I-CMTS to M-CMTS architectures
      --  Introducing hybrid IP/QAM video services to support tru2way and
          DVB-MHP services

--  Yesterday, Comcast announced it expects to pass 65% of all North
    American homes with DOCSIS 3.0 in 2009

--  However, subscriber uptake in North America will be limited in 2009 and
    2010, mainly due to economic pressures and high cable prices

--  Other regions will see better subscriber uptake rates because pricing
    is competitive with telco fiber and VDSL offerings

--  In Japan and South Korea, J:Com, CJ Cablenet, and others have already
    passed 80% of their subscribers with DOCSIS 3.0 and are expected to
    complete their buildouts this year

--  In the near term, UEQs will be deployed in increasing numbers to
    support M-CMTS and switched digital video rollouts, and in the
    longer-term, to support the move to cable IPTV and switched unicast
    offerings

REPORT SYNOPSIS

Infonetics' report provides worldwide and regional forecasts and market size through 2013 for standard and wideband cable broadband subscribers; CMTS revenue and ports (upstream and downstream); and universal edge QAM channels and revenue. The report also provides worldwide and regional CMTS vendor market share for ARRIS, Cisco, Motorola, and others. UEQ vendors tracked include ARRIS, BigBand, Casa, Cisco, GoBackTV, Harmonic, LiquidXStream, Motorola, RGB Networks, Tandberg TV, Teleste, and Vecima.

FOR MORE INFORMATION

View report sample data and more from Infonetics' online portal (log in at www.infonetics.com; see Broadband area). For sales, please contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) 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.

Contact Information

  • Press Contact:
    Jeff Heynen
    Directing Analyst, Broadband and Video
    Infonetics Research
    (408) 583-3359
    Email Contact
    twitter: jeffheynen