DOCSIS 3.0 pushes cable broadband market

CALIFORNIA, USA: Global cable modem termination systems (CMTS) and edge quadrature amplitude modulation (QAM) revenue increased to $368 million in 4Q10, up two percent from 3Q10, finds market research firm Infonetics Research in its latest report.

For the year, the CMTS and edge QAM market grew 23 percent to $1.62 billion worldwide in 2010, adds the report.

Also Read: Future bright for WiMAX Mobility Services & VoIP

"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," said Jeff Heynen, directing analyst, broadband access, Infonetics Research.

The big end-of-year spending typically seen in the CMTS market (4Q09 revenue was up 26 percent) did not happen in 4Q10 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 hybrid fiber coaxial (HFC) plants.

"Increased revenue will be a challenge early on, as vendors absorb some forward pricing on these denser platforms. However, MSO demands for more DOCSIS channels will ultimately boost annual revenue increases," notes Heynen.

In 4Q10, some operators slowed their switched digital video rollouts or, such as Comcast, postponed them altogether. Cisco's strong CMTS sales in 2010, particularly in North America and EMEA, propelled them back into the #1 spot.

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 4Q10.