Cable broadband equipment market down in 3Q10 after 12 months of strong growth

CAMPBELL, CA — Market research firm Infonetics Research released its third quarter (3Q10) CMTS and Edge QAM Hardware and Subscribers report, which tracks cable modem termination systems (CMTS), edge quadrature amplitude modulation (QAM) channels, and cable broadband subscribers.

ANALYST NOTE

“After four quarters of sequential growth, a decline in the cable aggregation market was inevitable, and it happened in the third quarter of 2010, with a 23% drop in worldwide revenue (CMTS revenue was down 27%; edge QAM revenue was up a bit). In North America, CMTS revenue was down 30%, as Comcast and other operators slowed their DOCSIS 3.0 rollouts because they’ve either hit their homes-passed goals or they are waiting on new line cards,” notes Jeff Heynen, directing analyst for broadband access at Infonetics Research.

MARKET HIGHLIGHTS

• CMTS port shipments and revenue declined in all world regions in 3Q10, including double-digit percent declines in North America, Asia Pacific, and EMEA
• The drop in CMTS sales pushed the overall market down to $352 million worldwide in 3Q10, from $458 in 2Q10
• The overall cable broadband equipment market is up 15% year-over-year, from 3Q09 to 3Q10
• Worldwide edge QAM revenue increased just over 1% from 2Q10 to 3Q10 due to an uptick in QAM channels shipped for DOCSIS/M-CMTS applications
• Motorola was the only major CMTS vendor to see an increase in port shipments in 3Q10, increasing its shipments to operators in Asia Pacific and Central and Latin America
• Cisco maintained its lead in worldwide CMTS market share, and also captured more than two-thirds of the North American CMTS market in 3Q10
• Harmonic held on to the top spot among edge QAM vendors, further distancing itself from BigBand Networks
• Comcast’s proposed converged multiservice access platform (CMAP) is expected to see trials and early deployments in 2011, and will rely on both edge QAMs to deliver increased narrowcast video capacity, and CMTS downstream ports to deliver more DOCSIS capacity to subscribers

REPORT SYNOPSIS

Infonetics’ CMTS and Edge QAM report provides worldwide and regional vendor market share, market size and forecasts through 2014 for standard and wideband cable broadband subscribers; upstream and downstream CMTS revenue and ports; and edge QAM channels and revenue by application, including linear broadcast TV, VOD, unicast video, switched digital video, M-CMTS and DOCSIS.

The report tracks ARRIS, BigBand, Casa Systems, Cisco Systems, Ericsson, GoBack TV, Harmonic, LiquidXStream, Motorola, RGB Networks, Sumavision, Teleste, and Vecima.