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Cisco, Motorola power strong CMTS sales

Thu, 08/19/2004 - 8:00pm
Karen Brown

Second-quarter cable modem termination system revenues jumped 18 percent from the first quarter of this year, with strong finishes posted by Cisco Systems Inc. and Motorola Inc. worldwide, and by ARRIS in North America, according to the latest statistics from Infonetics Research.

The analyst firm's quarterly Cable Aggregation Hardware roundup of the CMTS market found Cisco, Motorola and ARRIS combined to claim 87 percent of the worldwide CMTS market, which totaled $425 million in 2003. Cisco retains its top position in revenue market share, followed by Motorola and ARRIS. North America continues to be the dominant market, claiming 60 percent of the CMTS unit revenue for the quarter.

In upstream port totals, Cisco also claims the lead. Overall, upstream port shipments - a measure of CMTS units and expansion blades - increased 29 percent, and downstream port shipments jumped 63 percent compared to the first quarter.

But it isn't all good news. The average revenue per CMTS port is continuing to drop, down from $2,800 in 2003 to $2,240 in the latest quarter. Infonetics further predicts vendors will add voice and multimedia functions to their CMTS products to prop up per-port revenue above the $2,000 mark through 2007.

"As cable operators add more data capacity and telephony and multimedia services, worldwide CMTS revenue will grow steadily through 2007," said report lead author Michael Howard, principal analyst of Infonetics Research. "Competition with DSL providers, especially the large incumbents, is driving much of the growth in this area."

A companion report on cable customer premise equipment - which includes cable modems, routers and wireless networking gateways and IADs - found sales increased 15 percent in the second quarter, with unit shipments forecast to jump 132 percent between 2003 and 2007. But flagging prices mean revenues will only grown 20 percent in that time period, Infonetics projects.

In CPE, Motorola again maintained a strong market share lead for the second quarter, followed by Terayon Communication Systems Inc., Ambit and Thomson. Toshiba America Information Systems came in fourth despite a recent announcement it was discontinuing its cable modem line, while Scientific-Atlanta Inc. claimed fifth place.

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