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2006 CMTS revenue tops $1B; Cisco still dominates

Tue, 02/27/2007 - 7:40am
Brian Santo, CED

In 2006, worldwide cable modem termination system (CMTS) revenue for the first time exceeded $1 billion.

The total was up 39 percent from 2005, when revenue reached its previous high of $736 million, according to Infonetics Research's latest "CMTS Hardware & Subscribers" report. The worldwide market is expected to near the $1.5 billion mark in 2010.

All four major players in the sector  - ARRIS, BigBand Networks, Cisco Systems Corp., and Motorola - saw substantial gains in both revenue and port shipments in 2006, as cable operators increased their digital voice subscribers and expanded their reach in anticipation of competition from telcos. Infonetics said the initial introduction of wideband capabilities helped as well.

"With more services, more subscribers, and more territory to cover, we expect single- to double-digit growth for both CMTS ports and revenue every year through at least 2010, despite the intense competition and MSO pressure on CMTS vendors, which is inhibiting revenue growth a bit," said Jeff Heynen, directing analyst for broadband and IPTV at Infonetics Research, in a statement.

Infonetics reported that worldwide CMTS port shipments jumped 51 percent between 2005 and 2006, and that the number of worldwide cable broadband subscribers jumped 20 percent in 2006, reaching just under 59 million.

Cisco continues to lead the market, increasing CMTS revenue 54 percent between 2005 and 2006, up $128 million to $529 million. ARRIS made significant gains on Cisco's CMTS port and revenue share in North America and Asia Pacific in the fourth quarter, however.

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