Cisco Widens Global CMTS Lead

Cisco’s worldwide cable modem termination systems (CMTS) revenue share increased 9
percent to 60 percent in the first quarter of 2011, powered by shipments of its
3G60 cards.

We saw record numbers of CMTS port shipments quarter-over-quarter in 1Q11, up 39
percent worldwide and nearly double in North America,
but CMTS revenue failed to keep up due to extreme downward pricing pressure,”
said Jeff Heynen, directing analyst for broadband access at Infonetics Research.

The launch of Cisco’s 3G60 card
and ARRIS’ field upgrade of existing 16D CAM cards to double their capacity
resulted in intense pricing competition as both vendors looked to solidify
their customer bases with forward pricing in advance of the upcoming CMAP
upgrade cycle.


Price reductions will stabilize, and after this year, we’ll see sustained revenue
growth for the CMTS/CMAP market, as operators’ demand for capacity will more
than offset further reductions in pricing,” Heynen added.


According to the report, worldwide CMTS and edge QAM revenue grew 13 percent to $414
million in 1Q11 over 4Q10.

Bucking its normal seasonal trends, the edge QAM hardware market grew 3 percent in 1Q11
over 4Q10, led by a huge bump up in North American edge QAM revenue for DOCSIS/M-CMTS

Cisco’s worldwide CMTS revenue share jumped 9 percentage points to 60% in 1Q11, powered by
shipments of its 3G60 cards.

Cisco hasn’t seen such market share levels in the CMTS market since early 2008, when
it first introduced its Shared Port Adapter (SPA) card.

Cisco also posted strong gains in the edge QAM hardware market, jumping ahead of
BigBand in 1Q11 to take the #2 spot; Harmonic maintained its lead in the edge
QAM market.



By Team
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