According to a recent report of Dell'Oro Group,
Arris Group Inc.
(
ARRS
) shipped majority of customer premises equipments (
CPE
) for cable TV industry, which are DOCSIS 3.0 (Wideband) enabled.
The DOCSIS 3.0 CPE market is intensely competitive as large
broadband gear makers, such as
Cisco Systems Inc.
(
CSCO
) and Motorola Mobility Holdings Inc. (
MMI
) are major players. Besides, small sized gear makers such as
Technicolor S.A. and Ubee Interactive also competes in this
market.
Dell'Oro's reports shows 43% of the total CPEs shipped in the
third quarter of 2011 were DOCSIS 3.0 enabled. This was an
increment of nearly 100% year over year. In the previous quarter,
Arris shipped over 1.4 million CPEs. Out of this, nearly 53%
devices were DOCSIS 3.0 enabled compared with 36% in the prior-year
quarter. Total CPE market value was approximately $333 million in
the previous quarter.
Arris has a strong pipeline of CMTS CPE products, including a
series of next-generation high-capacity head-end and terminal
equipment solutions. The company is also expanding its portfolio of
residential products to integrate home networking options for
voice, data, and video applications.
Intense competition among cable operators, satellite carriers
and telecom service providers for broadband market share has forced
the cable MSOs to opt for cost effective bandwidth while boosting
the technology for high-speed network. DOCSIS 3.0 is a digital
channel bonding technique that creates one larger and faster
logical pipe to support throughput of at least 100 Mbit/second.
Cable TV operators are gradually standardizing their respective
networks with DOCSIS 3.0 enabled CPEs even if the customer is
reluctant to subscribe to wideband network. In U.S., cable TV
operators will complete 77% of DOCSIS 3.0 deployment. This positive
trend coupled with a decline of DOCSIS 3.0 CPE devices and growing
popularity of integrated residential wireless gateways are the main
reasons for the significant growth of CPE devices, which support
DOCSIS 3.0 technology.
ARRIS GROUP INC (
ARRS
): Free Stock Analysis Report
CISCO SYSTEMS (
CSCO
): Free Stock Analysis Report
MOTOROLA MOBLTY (
MMI
): Free Stock Analysis Report
Zacks Investment
Research