Light Reading
Global shipments of cable data and voice modems climbed above the 8 million-unit mark again in 3Q07, as MSO demand remained robust

Cable Modem Shipments Growing Strong

Alan Breznick
1/25/2008
50%
50%

Combined worldwide shipments of cable data and voice modems climbed above the 8 million-unit mark again in the third quarter, as MSO demand remained robust for both types of devices.

In the latest compilation of figures by Heavy Reading, the leading cable equipment manufacturers shipped nearly 8.2 million Docsis cable modems, embedded multimedia terminal adapters (E-MTAs), and integrated gateways during the July-to-September 2007 quarter. That represents a 10.5 percent jump from the nearly 7.4 million Docsis devices that were shipped during the corresponding period of 2006.

Not too surprisingly, E-MTAs, which combine cable data modems with PacketCable IP phone adapters, led the way upwards again, as cable operators continued to ramp up their rollouts of VOIP services. Global voice modem shipments rose to nearly 3.7 million units in the summer quarter, up 18.3 percent from the year-ago period.

Thanks to this strong increase, E-MTAs accounted for a hefty 44.8 percent of all Docsis device shipments by the top cable technology vendors in the quarter. That's up a touch from 42 percent in the year-ago period.

But surprisingly, data-only modems held their own once more in the third quarter, despite the soaring demand for integrated data-and-voice service. Shipments of the more traditional cable modems climbed to more than 4.4 million units, up 3.9 percent from the summer of 2006, thanks largely to a strong performance by Motorola Inc. (NYSE: MOT).

Arris sets E-MTA record
Arris Group Inc. (Nasdaq: ARRS), which has ruled the rapidly growing E-MTA sector since 2005, widened its already sizeable edge over previous category leader Motorola as it easily set a new quarterly high for voice modem shipments. For the first time, Arris reported shipping close to 2 million E-MTAs worldwide, up about 50 percent from a year ago. As a result, it captured an impressive 53.8 percent of the worldwide market, up from 42.5 percent a year ago.

Motorola kept its hold on second place in the worldwide E-MTA rankings despite lower unit shipments in the third quarter. Motorola shipped 719,000 voice modems in the period, down 10.1 percent from the same quarter of 2006. Due to this decrease and Arris's sharp increase, Motorola's market share sank to just 19.8 percent, well down from 25.9 percent a year ago.

Like Motorola, the Scientific Atlanta subsidiary of Cisco Systems Inc. (Nasdaq: CSCO) suffered slumping E-MTA shipments in the summer quarter. Scientific Atlanta shipped 528,148 voice modems in the quarter, down 21.5 percent from a year ago. Accordingly, its market share plunged to 14.4 percent, down from 21.8 percent in summer 2006.

Table 1: Top E-MTA Suppliers in 3Q07

Vendor E-MTAs Market Share
Arris
1,966,637
53.8%
Motorola
719,000
19.7%
Scientific Atlanta
528,148
14.4%
Thomson
231,983
6.3%
Ambit
99,730
2.7%
Other
110,000
3.0%
Total
3,655,498
100.00%
Source: Company reports, Heavy Reading estimates




Moto motors along on data front
Even with the continuing growth of E-MTAs, purely data modems still accounted for more than 55 percent of the category total. Motorola continued to rule the roost here, shipping more than 1.9 million data-only devices, up 28.5 percent from the prior year. With a market share of 43.4 percent, Motorola shipped nearly twice as many modems as any other vendor.

Scientific Atlanta maintained its strong hold on second place despite a slight year-over-year drop in modem shipments. The Cisco subsidiary shipped close to 1 million data devices in the third quarter, down a slight 2 percent from the summer of 2006. As a result, its market share slipped to 23.4 percent.

Similar to Scientific Atlanta, Ambit Microsystems Corp. held onto third place despite a relatively small decline in modem shipments. Ambit shipped more than 600,000 data devices in the third quarter, down 7.8 percent from its year-ago totals. Accordingly, its market share slid to 14.3 percent.

Table 2: Top Cable Modem Suppliers in 3Q07
Vendor Cable Modems Market Share
Motorola
1,928,000
43.4%
Scientific Atlanta
979,128
22.0%
Ambit
635,540
14.3%
Thomson
251,116
5.7%
Arris
106,790
2.4%
Other
540,000
12.2%
Total
4,440,574
100.00%
Source: Company reports, Heavy Reading estimates




Moto still takes Docsis crown
Despite Arris's growing domination of the E-MTA market, Motorola clung to its lead in the overall Docsis device business globally, thanks mainly to its continued domination of the data-only modem business. Overall, Motorola shipped more than 2.6 million Docsis devices in the quarter, up 15.1 percent from the year-ago period. As a result, it maintained a leading 32.4 percent market share, up slightly from 31.2 percent last year.

Riding the wave of its E-MTA success, Arris came in a strong second place in the overall vendor rankings, widening its edge over the slumping Scientific Atlanta. Arris shipped a total of almost 2.1 million data and voice modems in the third quarter, up 45.8 percent from the summer of 2006. Thanks to this surge, Arris's global market share climbed to 25.4 percent, up from 19.3 percent last year.

Scientific Atlanta remained stuck in third place in the overall Docsis device standings, after wresting second place away from Arris last year. The Cisco subsidiary shipped a combined total of almost 1.6 million data and voice modems in the third quarter, down 6.9 percent from the prior year. Consequently, its market share slipped to 19.2 percent, down from 22.9 percent a year ago.

Table 3: Total Docsis Device Shipments in 3Q07
Vendor Docsis Devices Market Share
Motorola
2,647,000
32.4%
Arris
2,073,427
25.4%
Scientific Atlanta
1,569,671
19.2%
Ambit
735,270
9.0%
Thomson
483,099
5.9%
Other
650,000
8.0%
Total
8,158,467
100.00%
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 Interviews
CenturyLink: Building the Case for NFV

12|19|14   |   02:14   |   (0) comments


At the 2020 Vision Executive Summit, James Feger, VP, Network Strategy & Development at CenturyLink, talks about how the US operator is approaching virtual network functions from an operational and business case perspective.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, 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
Hot Topics
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
Comcast Launches 4K Streaming Service
Alan Breznick, Cable/Video Practice Leader, 12/18/2014
US Carriers, You're Going to Cuba!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/18/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Webinar Archive