Arris takes CMTS lead; router market rebounds

Wed, 02/24/2010 - 7:05am
Traci Patterson

Arris took the CMTS lead from Cisco in 2009, according to the Q4 2009 edition of Infonetics Research’s “CMTS and Edge QAM Hardware and Subscribers report.

“True to form, operators in North America, particularly in the U.S., spent what was left of their equipment budgets in the fourth quarter of 2009, giving a year-end boost to CMTS and edge QAM vendors. Comcast, Time Warner, Cox and Charter all acquired more downstream capacity by adding more CMTS ports, and Time Warner Cable continued its major upgrade to switched digital video, which helped bolster edge QAM revenue,” noted Jeff Heynen, directing analyst for broadband and video at Infonetics Research.

“Over the last five years, Arris grew its share of the worldwide CMTS market from 18.6 percent in 2005 to 42.9 percent in 2009, while Cisco’s share declined from 54.4 percent to 38.4 percent, with Arris taking the lead from Cisco for the year for the first time in 2009. Meanwhile, Motorola maintained a relatively even keel over the same period, increasing its CMTS revenue but losing a few points of share to Arris, as well,” added Heynen.

CMTS and edge QAM report highlights included:

  • Worldwide CMTS and edge QAM vendor revenue increased 22 percent to $363 million in Q4 2009 from the third quarter, led by sequential gains by the three major players in the market: Arris, Cisco and Motorola.
  • Cisco posted the strongest gains in North American CMTS revenue for the last two quarters.
  • Worldwide CMTS revenue was down 10.7 percent in 2009 (2008 was a record year for CMTS deployments), while edge QAMs ticked up 6.4 percent for the year.
  • Together, CMTS and edge QAM sales totaled $1.24 billion in 2009.
  • BigBand had a big quarter in edge QAM shipments and had passed a total of 33 million homes with its switched digital video solution by the end of the fourth quarter, an increase of 5 million homes from Q3 2009.

Meanwhile, the worldwide service provider router market recorded its highest sequential growth rate in more than two years during the fourth quarter of 2009, according to a new report by Dell’Oro Group

Q4 2009 Worldwide Service Provider Router Leaders



Quarter-over-quarter growth
















Quarterly router sales increased 15 percent to $2 billion, compared with sales declines in four of the five previous quarters.

"The good news is that router manufacturers saw their customers loosening purse strings during the fourth quarter, and that lends confidence for market recovery in 2010," said Shin Umeda, vice president at Dell'Oro Group. "With the worst of the economic downturn behind us, we expect that service providers will start more network projects resulting in meaningful market growth this year.”

More Broadband Direct 2/24/10:
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•  Comcast to adopt Web security protocol
•  Clearwire posts narrowing losses, soaring net adds
•  Avenue Broadband becomes Sigma Systems customer
•  Motorola vague on reported move to Calif.
•  Report: More TVs connected to Internet
•  Arris takes CMTS lead; router market rebounds
•  Wireless carriers tell FCC they disclose fees



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