Light Reading
CommScope snags edge QAM startup, putting it on a path to develop products for a next-gen cable access architecture helmed by Comcast

Why CommScope Bought LiquidxStream

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
6/2/2011
50%
50%

CommScope Inc. has bought Montreal-based LiquidxStream Systems Inc. , a startup focused on dense edge QAMs, and may build a key component for Converged Multiservice Access Platform (CMAP), an architecture developed by Comcast.

Light Reading Cable reported in March that LiquidxStream was on the block and had shopped itself to Cisco Systems Inc. (Nasdaq: CSCO) and Motorola Mobility LLC . At the time, it was believed that ATX Networks Corp. of Ajax, Ontario, was closest to pulling off the deal. (See Suitors Circle LiquidxStream.)

CommScope did not disclose the purchase price, but a spokesman said all of LiquidxStream's 40 employees will join CommScope and that the vendor will retain its presence in Montreal.

LiquidxStream's claim-to-fame is its edge QAM port density (36 QAMs per RF port), rivaling Harmonic Inc. (Nasdaq: HLIT)'s HectoQAM and putting it within shouting distance of BigBand Networks Inc. (Nasdaq: BBND)'s new MSP2800. LiquidxStream, founded in 2005, is headed up by former Videotron Ltd. exec François Laflamme. (See BigBand Plots Plans for Comcast's CMAP and Harmonic Lays Claim to Edge QAM Density Crown .)

Why this matters
Moving beyond traditional edge QAMs, LiquidxStream has been key in the development of the Access Shelf component of the modular implementation of the CMAP, a super-dense architecture that will help MSOs make the leap to an all-IP platform.

LiquidxStream has not announced a CMAP product, but CommScope tells Light Reading Cable that the vendor's existing edge QAM technology represents the company's "first step into that direction and we're committed to expanding into CMAP." That commitment grows in importance now that potential LiquidxStream competitor RGB Networks Inc. has pulled out of the CMAP market. (See RGB Shelves CMAP Product Plans .)

For more
Read more about LiquidxStream and recent CMAP developments.



— Jeff Baumgartner, Site Editor, Light Reading Cable

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:03:29 PM
re: Why CommScope Bought LiquidxStream


That, or they are really banking on a CMAP migration path that involves a downstream-only version of the Access Shelf.  It'll help them blaze a path to CMAP, if that's the direction they choose, but whether that will lead to a path of revenue and growth glory...   I like CommScope's chances much better than I liked LiquidxStream's when it was a startup that was going it alone.


You're good at questioning when cmap/cesar will take off and when XYZ plan will turn into ROI, but rarely offer any answers. Care to take a stab?  JB


 

ycurrent
50%
50%
ycurrent,
User Rank: Light Beer
12/5/2012 | 5:03:29 PM
re: Why CommScope Bought LiquidxStream


So why did CommScope buy LiquidxStream?


Perhaps, with CommScope's diverse portfolio (and private equity ownership), it will be insulated from the low edgeQAM margins and the who-knows-when CMAP/CESAR revenues will be realized?


Most likely a bargain sale.

ycurrent
50%
50%
ycurrent,
User Rank: Light Beer
12/5/2012 | 5:03:28 PM
re: Why CommScope Bought LiquidxStream


With Comcast, Time Warner and others backing CMAP/CESAR, it is hard to challenge their timelines; it is important to them and they will likely move fwd with it, where it makes sense.


Ironic, however, that in the recent past some viewed CMAP as potentially derailing DOCSIS 3 momentum.  However, the opposite seems to be the case.


As long as CMTS sales continue - ARRIS, Cisco, Motorola Mobility - then it is likely harder for CMAP/CESAR to get a solid entrance/footing.


Market size and timing are the real questions; if I had answers, I'd probably not be in the "posting" business. But point taken that questions are simpler than answers.

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:03:28 PM
re: Why CommScope Bought LiquidxStream


But agree that they probably didn't get close to top dollar.  Several companies looked at them, but i never got the sense that there was much in the way of a bidding war going on.   JB

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:03:28 PM
re: Why CommScope Bought LiquidxStream


True. If someone says trials will start this year and deployments next year, that still doesn't really help solve the ROI riddle.  But you have to wonder which of the entrants will have the stomach to stay in long-term, so we'll see an eventual shakeout even if there's a relatively small group of vendors to be shaken out and we might witness a CMTS replay that saw companies like BBND, Juniper, Terayon, 3Com, Com21, et al,  scrap product lines or bug out.  The cable modem market used to have a huge vendor roster, but scared off many seemingly solid wannabees with deep pockets  (Toshiba, 3Com, Ericsson,etc.) when margins became wafer thin. The challenges won't be much different for the vendors when CMAP/CESAR takes hold... it's going to be a bumpy ride.    JB


 


 

Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Razorsight Expert's Advice on Real-Time Analytics

11|27|14   |   1:43   |   (0) comments


Razorsight's powerful cloud-based Predictive Analytics solutions are used by the world's leading communications and media brands to drive smarter decisions, enable faster actions and optimize outcomes. Get expert advice.
LRTV Interviews
From 4G to 5G: Alcatel-Lucent's Dave Geary

11|25|14   |   09:09   |   (1) comment


Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Net Neutrality Even Mark Cuban Could Love
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/26/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
Why 5G Is a Different Beast
Robert Clark, 11/26/2014
New Juniper CEO Can Be Thankful for $14.5M
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2014
Eurobites: Net Neutrality Battle Looms
Paul Rainford, Assistant Editor, Europe, 11/27/2014
Like Us on Facebook
Twitter Feed