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Report: Cisco back on top for 2010 CMTS sales

Fri, 02/25/2011 - 7:30am
Mike Robuck

According to a recent report by Infonetics Research, Cisco reclaimed the top spot for global CMTS sales from Arris.

The report, which is titled "CMTS and Edge QAM Hardware and Subscribers," tracks cable modem termination systems (CMTSs), edge quadrature amplitude modulation (QAM) channels and cable broadband subscribers.

Cisco reclaims lead in global CMTS market in 2010

Cisco was able to wrest the CMTS crown back from Arris, thanks to its strong sales in North America and EMEA. Harmonic, due to its ongoing video-on-demand deployments with operators worldwide, held on to the top spot among edge QAM vendors in 2010 and in the fourth quarter.

Overall, DOCSIS 3.0 upgrades pushed the cable broadband equipment spending up 23 percent last year to $1.62 billion.

"Although the usual fourth-quarter budget flush was quieter than in recent years, 2010 ended as the biggest year yet for both CMTS and edge QAM revenue. Given the revolutionary density enhancements we're expecting on both platforms and the stated capacity demands of major MSOs worldwide, the next five years should see significant port growth. Increased revenue will be a challenge early on, as vendors absorb some forward pricing on these denser platforms. But MSO demands for more DOCSIS channels will ultimately boost annual revenue increases," wrote Jeff Heynen, Infonetics Research's directing analyst for broadband access.

Other highlights from the report included:

  • Worldwide CMTS and edge QAM revenue increased to $368 million in the fourth quarter, up 2 percent from the third quarter.
  • The big end-of-year spending typically seen in the CMTS market (fourth-quarter revenue in 2009 was up 26 percent) didn't happen in the most recent fourth quarter for several reasons: Some MSOs are waiting for Cisco's 3G60 and Arris' XD-CAM CMTS line cards, many have already achieved their DOCSIS 3.0 homes-passed goals, and some shifted focus to their HFC plants.
  • In the fourth quarter, some operators slowed their switched digital video rollouts or, like Comcast, postponed them altogether.
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