Arris Strengthens Foothold in the TV Infrastructure Market - Analyst Blog


Shutterstock photo

Leading video and broadband gear manufacturer Arris Group Inc. ( ARRS ) is rapidly gaining traction in the global video infrastructure market. The pay-TV industry is currently undergoing a transitional phase. Severe competitive threat from low-cost online video streaming service providers has compelled leading cable TV operators to restructure their business model.

At present, the cable MSOs (multi service operators) are bundling high-speed broadband (Internet), telephony (voice) and Internet TV with traditional HD TV services. Arris' rich portfolio of next-generation video and broadband infrastructure products is allowing cable MSOs to transform themselves into an all-digital IP-based quad-play bundled service provider. Arris currently carries a Zacks Rank #3 (Hold).

Arris has restructured its business model into three reporting segments, namely, network and cloud division, customer premises equipment group, and strategy and converged services unit. Comcast Corp. ( CMCSA ), Time Warner Cable Inc. ( TWC ), Charter Communications Inc. ( CHTR ) and AT&T Inc. together constituted 51.8% of the total first-quarter 2014 revenue.

At present, Arris is a major set-top box supplier of Comcast. The company provides X1 set-top boxes to Comcast, which support the cable TV operator's industry leading cloud-based and Internet-delivered services. Comcast also launched Arris' XG1 gateway for its X1 TV service in the third quarter of 2013.

The next-generation web-capable platform of Comcast called "X1" offers a hybrid IP/QAM video gateway with an advanced user interface and the ability to port third-party apps that tie into a cloud-based infrastructure. The XG1 gateway further offers several utilities to X1 customers, including intuitive search, voice control, multi-screen facility and improved DVR experience.  

In Oct 2012, Arris launched the innovative E6000 CER which acts as a powerful C4 cable modem termination system (CMTS) for the company and can be converted into a Converged Cable Access Platform (CCAP) ecosystem as well. CCAP helps carriers maximize bandwidth, simplify operational structure and evolve according to subscriber demand.

To add to the benefits, E6000 integrates Arris' edge QAM legacy video architecture with the CMTS DOCSIS IP network to offer cable TV operators a readymade integrated-IP platform. Importantly, Arris has revealed that its E6000 CER currently support more than 5 million cable TV subscribers globally.

Arris recently, strengthened its industry leading IP video delivery platform with the acquisition of SeaWell Networks, a leading developer of adaptive bit rate (ABR) streaming technologies. This was the first major takeover of Arris following its acquisition of the set-top box business of Motorola Mobility. Notably, SeaWell boasts a powerful portfolio offering IP videos, multiscreen videos, and ad insertion solutions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ARRIS GROUP INC (ARRS): Free Stock Analysis Report

COMCAST CORP A (CMCSA): Free Stock Analysis Report

CHARTER COMM-A (CHTR): Free Stock Analysis Report

TIME WARNER CAB (TWC): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: ABR , ARRS , CMCSA , CHTR , TWC

More from


Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by