Cisco: Cable Kingpin?
11/10/2010 -- Don't look now, but Cisco Systems Inc. is poised to become a cable kingpin, thanks to its strong performance in the cable modem termination system (CMTS) segment, where Cisco now controls more than half (58 percent) of the total tally.
That's according to market watcher Infonetics Resarch, which cited Cisco's strong CMTS showing as one of several bright spots in a cable networking equipment segment that posted double-digit growth in Q2 of this year.
In addition to booming CMTS sales, uptake of edge quadrature amplitude modulation (QAM) channels has also been brisk. "Cisco led a strong second quarter in CMTS port shipments and revenue, capturing 58 percent of worldwide revenue. Cable operators continue to add both downstream and upstream capacity for DOCSIS 3.0 and some early IPTV deployments in Europe," said Jeff Heynen, directing analyst for broadband access with Infonetics, in a statement. "Edge QAMs also saw an 8 percent revenue increase, driven by growth in video on demand and switched digital video deployments."
All told, the CMTS and edge QAM market grew by 10 percent between the first and second quarters of 2010. In addition to rushing out support for the DOCSIS 3.0 standard, cable operators are also investing in infrastructure gear to support IPTV services, Infonetics reports.
Growth was strongest in Asia-Pacific (where sales increased by almost 75 percent) and Europe, the Middle East and Africa (where sales were up by almost one quarter). The Central and Latin American regions -- where sales had previously been brisk -- posted "predictable decline[s]," according to Infonetics.
Growth in the U.S. clocked in at a healthy 17 percent.
-- By Stephen Swoyer
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