Light Reading
Cisco, Arris, Harmonic and Motorola head the cable access market but don't expect the next-gen access platform to spawn many new challengers

CCAP Market Is Cisco's & Arris's to Lose

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
5/10/2012
50%
50%

As cable's next-generation access platform approaches the early deployment phase, there appears to be little chance that newcomers will have much luck knocking incumbents, such as Cisco Systems Inc. (Nasdaq: CSCO), Arris Group Inc. (Nasdaq: ARRS) and Harmonic Inc. (Nasdaq: HLIT), from their pedestals -- even if the market takes off. (See Comcast Issues CCAP RFP .)

That platform, called the Converged Cable Access Platform (CCAP), will give MSOs a super-dense, power- and space-saving architecture that will put all services on the same platform and provide a bridge to a future all-IP world. For CCAP, vendors are developing integrated chassis that combine cable modem termination system (CMTS) and edge QAM functions, as well as more modular, "non-routing" versions that will look alot like dense edge QAMs. Some suppliers, such as Arris, are developing both. (See Cable Rethinks 'Modular' CCAP .)

While the initial hope was that the platform would give players like Huawei Technologies Co. Ltd. , Alcatel-Lucent (NYSE: ALU) and Juniper Networks Inc. (NYSE: JNPR) a reason to jump in, it's increasingly likely that the CCAP market will be led by cable's usual suspects.

"Two to three players in the full CCAP space is about all the market can bear," says Infonetics Research Inc. analyst Jeff Heynen.

There's probably not near enough revenue opportunity for Juniper and AlcaLu to make big R&D investments in CCAP, so they'll likely stand clear. RGB Networks Inc. made that decision awhile ago, bugging out back when CCAP was called the Converged Multiservice Access Platform (CMAP). (See RGB Shelves CMAP Product Plans and AlcaLu Undecided on Cable Gear Opportunity.)

Those that stay and even lead the CCAP charge will have to deal with shrinking margins that have already gripped the current CMTS and edge QAM markets as products become denser and require vendors to use port licensing models that let MSOs activate capacity only when they need it. (See Cisco Pops Pay-As-You-Go CMTS Play.)

That probably means Cisco, Arris, Motorola Mobility LLC (depending on what happens after Google (Nasdaq: GOOG) swallows it) and Harmonic will continue to duke it out for the foreseeable future. (See Cisco, Harmonic Rule Cable Access in Q3 .)

Not that others won't try. Casa Systems Inc. is working on CCAP products, but Heynen believes it will have more success going after emerging, international markets than trying to unseat incumbents.

Casa's "mini" CMTS, introduced last year and targeted to rural areas and multi-dwelling units, could come into play particularly in China. Heynen says Huawei's been talking up a similar kind of CMTS product but doubts it will pull the trigger on a full CCAP strategy.

CommScope Inc. will have a CCAP product that fits the bill based in part on the edge QAM technology it acquired from LiquidxStream Systems Inc., but it will need to land some big deals if it's to be more than an outlier. (See Casa Shrinks Docsis 3.0 CMTS and Why CommScope Bought LiquidxStream.)

Getting big volume deals will be key to any long-term success in general. "Everyone will have to deal with lower margins than they have in the past," Heynen says of CCAP, predicting that margins will fall 10 percent to 15 percent during the first product wave.

— Jeff Baumgartner, Site Editor, Light Reading Cable



(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
12/5/2012 | 5:33:20 PM
re: CCAP Market Is Cisco's & Arris's to Lose


Aside from Comcast, which has been the lead player for CCAP, I wonder how much interest there is among other MSOs about CCAP versus higher density edge QAMs. I'm sure these vendors are wondering too!


 

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:33:19 PM
re: CCAP Market Is Cisco's & Arris's to Lose


I think it will depend on the size of the operator and the system.  The big guys and systems will probably add the full CCAPs and redeploy their older CMTS and eQams into the smaller markets.  And the smaller marktes will probably be good candidates for these non-routing CCAP devices, which is probably why we're going to see Cisco, Arris and Mot address both ends.  On the flip side, I don't see Harmonic and CommScope developing integrated CCAP chassis even though their end of the market is probably going to heat up in terms of competition.  JB




 
Flash Poll
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (0) comments


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Introducing 'The New IP'
Steve Saunders, CEO and founder, Light Reading, 9/11/2014
Glimpsing the Self-Driving Car
Dan Jones, Mobile Editor, 9/12/2014
AT&T to Launch WiFi Calling in 2015
Sarah Reedy, Senior Editor, 9/12/2014
AT&T: We'll Bundle Fixed Wireless & DirecTV
Mari Silbey, Independent Technology Editor, 9/15/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
Like Us on Facebook
Twitter Feed