Light Reading
Worldwide shipments of cable data and voice modems surged past 16 million units in the first half of the year

Modem Shipments Eclipse Old Record

Alan Breznick
9/7/2007
50%
50%

Combined worldwide shipments of cable data and voice modems surged well past the 16 million unit mark during the first half of the year, easily setting a new record for the cable industry.

According to the latest compilation of figures by Heavy Reading, cable equipment makers shipped nearly 16.4 million Docsis cable modems, embedded multimedia terminal adapters (E-MTAs), and integrated gateways over the first six months of 2007. That represents a 19.5 percent jump from the 13.7 million total Docsis devices that cable tech vendors shipped during the corresponding period of 2006.

E-MTAs, which integrate cable data modems with PacketCable IP phone adapters, led the way again in the first two quarters, thanks to steadily rising demand for the combined voice/data devices. As cable operators in the U.S., Canada, and the rest of the world ramped up their rollouts of VOIP service, global voice modem shipments rose to more than 7.4 million units, up 38.9 percent from nearly 5.4 million units in the first half of 2006.

Due to such robust growth, E-MTAs accounted for an impressive 45.4 percent of all Docsis device shipments by the leading cable tech vendors in the first two quarters. That's up from a 39.1 percent share for the same period a year earlier.

Worldwide shipments of data-only cable modems also climbed a bit over the first two quarters of the year, albeit much more modestly than E-MTA shipments. Cable equipment makers shipped close to 8.6 million data modems in the first six months of 2007, up just 2.5 percent from more than 8.3 million modems in the first half of last year.

Arris Group Inc. (Nasdaq: ARRS), which took over first place in the rapidly growing E-MTA category in 2005, widened its edge over previous category leader Motorola Inc. (NYSE: MOT) even as both companies boosted their shipment numbers sharply. Arris reported shipping nearly 3.5 million voice modems in the first half of the year, up from more than 2.1 million in the first two quarters of 2006. As a result, the firm captured 46.5 percent of the E-MTA market, up from 40.1 percent the year before.

Motorola fell further behind Arris in the worldwide E-MTA rankings, even though it also boosted its unit shipments markedly. Moto shipped 2.0 million voice modems in the first half of the year, up from nearly 1.6 million units in the first half of 2006. But, due to Arris's strong growth, Moto's market share actually slipped to 27.0 percent, down from 29.2 percent last year.

Third-place Scientific Atlanta experienced a weaker first half in E-MTA sales, causing it to lose more ground to both Arris and Motorola. SA shipped more than 1.0 million voice modems in 2007, down from more than 1.1 million units in 2006. Consequently, its market share plummeted to 14.0 percent, down from 20.8 percent the year before.

Table 1: Top E-MTA Suppliers in 1H07

 Vendor   E-MTAs   Market Share 
Arris 3,456,745 46.5%
Motorola 2,005,000 27.0%
Scientific Atlanta 1,042,480 14.0%
Thomson 494,212 6.7%
Ambit 213,299 2.9%
Other 220,000 3.0%
Total 7,431,736 100.0%
Source: Company reports, Heavy Reading estimates




Although E-MTAs generated most of the market's overall growth, data-only modems still accounted for slightly more than half of the Docsis devices shipped during the first six months of the year. The nearly 8.6 million cable modems made up 52.3 percent of the total Docsis gear market, down markedly from 60.9 percent a year earlier.

Motorola continued to dominate the traditional cable modem market, maintaining a wide lead over its closest pursuers. Moto reported shipping nearly 3.3 million cable modems globally in the first half, commanding a 38.0 percent market share, down from 43.7 percent a year earlier.

As Motorola's biggest rival, Scientific Atlanta gained some ground on the leader but remained a distant second in the cable modem rankings. SA shipped nearly 1.8 million modems in the first two quarters, earning itself a 20.5 percent share, up from 15.7 percent a year earlier.

Ambit Broadband came in a strong third in the rankings as it also closed the gap a bit with Motorola. Ambit shipped almost 1.4 million data modems over the first six months, carving out a 16.0 percent share, up from 13.6 percent in 2006.

Table 2: Top Cable Modem Suppliers in 1H07
 Vendor   Cable Modems   Market Share 
Motorola 3,254,000 38.0%
Scientific Atlanta 1,758,435 20.5%
Ambit 1,368,818 16.0%
Thomson 830,263 9.7%
Arris 267,424 3.1%
Other 1,080,000 12.6%
Total 8,558,940 100.0%
Source: Company reports, Heavy Reading estimates




Adding up both data-only modems and E-MTAs, Motorola maintained its dominance over the first half of the year. But Arris scooted past Scientific Atlanta for second place in the overall Docsis device rankings.

Hitting a new high, Motorola shipped more than 5.5 million data and voice modems in the first half, up from 5.2 million in 2006. As a result, Moto captured 33.9 percent of the market, still well ahead of its rivals although down from its 38.0 percent share a year earlier.

Arris, making the most of its soaring E-MTA sales, posted its strongest overall showing yet in the first half. Arris shipped a total of 3.7 million Docsis devices, up from 2.3 million units the year before. Thus, its overall market share rose to 22.8 percent, up from 17.1 percent in 2006.

Despite a healthy hike in total units shipped, Scientific Atlanta slumped back to third place in the overall Docsis device rankings after wresting away second place from Arris last year. SA shipped nearly 2.9 million data and voice modems in the first half, up sharply from 2.4 million units in 2006. But its worldwide market share stayed even at 17.7 percent because of the rival gains by Motorola and, especially, Arris.

Table 3: Total Docsis Device Shipments in 1H07
 Vendor   Docsis Devices   Market Share 
Motorola 5,545,000 33.9%
Arris 3,724,169 22.8%
Scientific Atlanta 2,891,719 17.7%
Ambit 1,582,117 9.7%
Thomson 1,324,475 8.1%
Other 1,300,000 7.9%
Total 16,145,363 100.0%
Source: Company reports, Heavy Reading estimates




— Alan Breznick, Senior Analyst, Heavy Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
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 Huawei Video Resource Center
Interview With Rick Talbot, Principal Analyst, Current Analysis

10|31|14   |   2:12   |   (0) comments


At the NFV Open Cloud Forum 2014, Rick Talbot shared his positive feedback about the holistic and open approach that Huawei adopts for SDN and NFV. He also found the open sharing at the event valuable as it features different perspectives from Huawei experts, telecom operators, industry analysts as well as security experts.
LRTV Huawei Video Resource Center
Interview With David Snow, Principal Analyst, Current Analysis

10|31|14   |   2:24   |   (0) comments


David Snow talked about his understanding of Huawei and its SoftCOM strategy at the NFV Open Cloud Forum 2014, saying that Huawei's wide approach combining IT and CT expertise, introducing big data and analytics into solutions and contributing to the OpenStack community particularly resonate with him and make the company stand out in the industry.
LRTV Huawei Video Resource Center
Interview With Roz Roseboro, Senior Analyst, Heavy Reading

10|31|14   |   3:13   |   (0) comments


Roz Roseboro commented on Huawei's data center capabilities and NFV solutions at the NFV Open Cloud Forum 2014, saying that in addition to covering all three key domains of compute, storage and networking, the company also emphasizes the importance of management capabilities and professional services, which are essential in making NFV a reality.
LRTV Huawei Video Resource Center
Interview With Michael Howard, Co-founder & Principal Analyst, Infonetics Research

10|31|14   |   5:25   |   (0) comments


Michael Howard talked about SDN, NFV, and OpenStack adoption at Huawei's NFV Open Cloud Forum 2014. Particularly, he pointed out that Virtual Enterprise CPE is the top NFV use case that operators plan to invest in over 2014 and 2015 to deliver new enterprise services through virtualized functions.
LRTV Huawei Video Resource Center
Interview With Jerry Caron, Senior Vice President, Current Analysis

10|31|14   |   3:11   |   (0) comments


At Huawei's NFV Open Cloud Forum 2014, Jerry Caron from Current Analysis said that orchestration and management are key to realizing SDN and NFV for global carriers, and the approach that Huawei is taking, with its FusionSphere Cloud OS at the core, is in the right direction to address the challenges.
LRTV Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
Upcoming Live Events
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
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed