Light Reading

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        ADD A COMMENT
Flash Poll
From The Founder
Network architects aiming to upgrade their networks to support agile, open, virtualized services in the 21st century need to consider new criteria when choosing between technology suppliers.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Wagner’s Ring
Business Value Trumps Moving Bits for Virtual Networks

7|7|15   |   01:22   |   (0) comments


At the recent Open Networking Summit, carriers described how they're focused on increasing revenue rather than just improving technology. This requires cultural changes, which can be more difficult than technology changes.
LRTV Custom TV
VeEX: Live from the Big Telecom Event 2015

7|7|15   |   2:28   |   (0) comments


VeEX's Carl Goldschmidt provides new product updates, including the RXT modular test platform and TX300s. With the latest technology in pluggable physical interfaces, the RXT platform combines multiple technologies with testing range from 10 Mbit/s to 100 Gbit/s. The TX300s is an "All-in-one" advanced multi-service test platform from 64 Kbit/s to 100 Gbit/s that ...
LRTV Custom TV
Light Reading Interviews MRV: 2015 Big Telecom Event

7|7|15   |   3:45   |   (0) comments


Scott St. John, SVP of Global Sales & Service, discusses MRV's customer-centric culture, the new OptiPacket OP-X1 100G access platform, and recent customer wins with Light Reading at BTE 2015.
LRTV Custom TV
Procera: Enhancing the Subscriber Experience

7|7|15   |   4:53   |   (0) comments


Hear from Procera on the latest in Subscriber Experience solutions. Learn how Procera's RAN Perspective technology helps network operators monitor and manage network traffic, in real-time, solving congestion and other network issues.
Between the CEOs
HP's Prodip Sen: The NFV Journey

7|7|15   |   21:39   |   (0) comments


Prodip Sen, CTO of the Network Functions Virtualization (NFV) business unit at HP, talks to Light Reading founder and CEO Steve Saunders about the four stages of the NFV journey.
LRTV Documentaries
Leading Lights 2015 Winners' Video

7|7|15   |   08:34   |   (2) comments


Hear what the Leading Lights 2015 winners had to say after they picked up their awards in Chicago.
LRTV Documentaries
PSA: The Perils of a Hyper-Connected Society

7|6|15   |   1:38   |   (0) comments


A public service announcement calling attention to the perils of a hyper-connected society.
LRTV Interviews
Guavus Takes Analytics on the Road

7|6|15   |   4:09   |   (4) comments


Guavus CEO Anukool Lakhina tells Light Reading CEO and founder Steve Saunders how the analytics tools developed for telcos are applicable to the transportation industry.
Telecom Innovators Video Showcase
Mellanox's New 25/50/100Gb/s Ethernet Products

7|6|15   |   2:44   |   (0) comments


Mellanox offers a complete 10/25/40/50/56/100Gbit/s solution that delivers industry-leading performance, scalability, reliability and efficiency for optimal application performance and data center ROI.
Telecom Innovators Video Showcase
Arista's CloudVision

7|6|15   |   6:01   |   (0) comments


Anshul Sadana answers questions from Steve Saunders, Light Reading’s founder and CEO, about Arista’s CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
LRTV Custom TV
Red Hat Demo

7|2|15   |   10:53   |   (0) comments


Red Hat's Nicolas Lemieux demonstrates how Red Hat is driving innovation through open source communities.
LRTV Custom TV
Red Hat's Approach to OpenStack Adoption

7|2|15   |   5:17   |   (0) comments


Red Hat's Radhesh Balakrishnan outlines his company's open source strategy for both enterprises and telcos.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
All Upcoming Live Events
Infographics
Equinix walks through the past four digital economy eras from computing to network to connected to today's interconneted world.
Hot Topics
What's a Gigabit Good For?
Carol Wilson, Editor-at-large, 7/1/2015
IBM Sows Seed for New Telco Unit, Plans NFV/SDN Push
Ray Le Maistre, Editor-in-chief, 7/6/2015
What the Helio? MVNO Is Back After First Flop
Sarah Thomas, Editorial Operations Director, 7/6/2015
FCC Chairman Talks Up SDN/NFV
Mari Silbey, Senior Editor, Cable/Video, 7/2/2015
A&E Launches Lifetime OTT Service
Alan Breznick, Cable/Video Practice Leader, 7/3/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Prodip Sen, CTO of the Network Functions Virtualization (NFV) business unit at HP, talks to Light Reading founder and CEO Steve Saunders about the four stages of the NFV journey.
Casa Systems has been going from strength to strength over the last couple of years. In 2013, it became the first vendor to ship an integrated CCAP device -- the ...
Cats with Phones