Leading video and broadband gear manufacturer
Arris Group Inc.
) 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.
Time Warner Cable Inc.
Charter Communications Inc.
) 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
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
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
COMCAST CORP A (CMCSA): Free Stock Analysis
CHARTER COMM-A (CHTR): Free Stock Analysis
TIME WARNER CAB (TWC): Free Stock Analysis
To read this article on Zacks.com click here.