Cable broadband market steady, broadband CPE market down in 1Q09, says Infonetics Research
Worldwide cable broadband hardware (CMTS, universal edge QAMs) revenues held steady in first-quarter 2009, down just 0.2%, according to Infonetics Research. CMTS sales actually inched up a bit (0.9%) in the first quarter. Operators are expected to take as much of a break as they can in 2009 to digest all the downstream capacity they deployed in 2008, and also to be more strategic with their DOCSIS 3.0-related rollouts.
"On the heels of record-high revenues in 2008 (US$1.23 billion), the cable broadband hardware market held steady in the first quarter of 2009, while the cable CPE segment dropped. This first-quarter slowdown points to a challenging 2009, in which an ailing economy and aggressive telco competition will make adding new broadband subscribers difficult. Still, compared to the overall bloodbath in telecom equipment spending in the first quarter, the cable broadband market was somewhat of a bright spot, and proves that cable operators remain committed to expanding their DOCSIS 3.0 footprint, transitioning from T-CMTS (traditional cable modem termination system) and I-CMTS (integrated CMTS) to M-CMTS (modular CMTS) architectures, and introducing hybrid IP/QAM video services to support tru2way and DVB-MHP services," said Infonetics analyst Jeff Heynen.
Although Cisco leads the overall worldwide market, Arris extended its key revenue share lead in the pivotal North American market by nearly seven percentage points.
On the other hand, sales of broadband CPE, including DSL, cable, residential gateways, and voice CPE, dropped 8% sequentially in the first quarter to US$945 million. Growth in the broadband CPE market is expected over the next few years as service providers deploy more integrated and more expensive home networking devices to deliver bundled voice, data, and video services with guaranteed QoS. The number of DSL subscribers worldwide grew 25% in 2008 to 283 million, while the wideband CPE segment, including wideband cable modems, wideband cable broadband gateways and wideband EMTAs, is up 42% on year.
Thomson and Motorola, with their breadth of CPE shipments to both DSL and cable operators, continue to lead the broadband CPE market worldwide.
"On the heels of record-high revenues in 2008 (US$1.23 billion), the cable broadband hardware market held steady in the first quarter of 2009, while the cable CPE segment dropped. This first-quarter slowdown points to a challenging 2009, in which an ailing economy and aggressive telco competition will make adding new broadband subscribers difficult. Still, compared to the overall bloodbath in telecom equipment spending in the first quarter, the cable broadband market was somewhat of a bright spot, and proves that cable operators remain committed to expanding their DOCSIS 3.0 footprint, transitioning from T-CMTS (traditional cable modem termination system) and I-CMTS (integrated CMTS) to M-CMTS (modular CMTS) architectures, and introducing hybrid IP/QAM video services to support tru2way and DVB-MHP services," said Infonetics analyst Jeff Heynen.
Although Cisco leads the overall worldwide market, Arris extended its key revenue share lead in the pivotal North American market by nearly seven percentage points.
On the other hand, sales of broadband CPE, including DSL, cable, residential gateways, and voice CPE, dropped 8% sequentially in the first quarter to US$945 million. Growth in the broadband CPE market is expected over the next few years as service providers deploy more integrated and more expensive home networking devices to deliver bundled voice, data, and video services with guaranteed QoS. The number of DSL subscribers worldwide grew 25% in 2008 to 283 million, while the wideband CPE segment, including wideband cable modems, wideband cable broadband gateways and wideband EMTAs, is up 42% on year.
Thomson and Motorola, with their breadth of CPE shipments to both DSL and cable operators, continue to lead the broadband CPE market worldwide.
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