Cisco Keeps Hammerlock on CMTS Market
Cisco Systems Inc. (Nasdaq: CSCO) remained the king of the hill when it came to cable modem termination system (CMTS) revenue share in the second quarter, though Motorola Mobility LLC picked up some ground on the field.
Infonetics Research Inc. reported Thursday that Cisco still owns about 60 percent of that global market, trailed by Arris Group Inc. (Nasdaq: ARRS) (31 percent) and Motorola (12 percent). Casa Systems Inc. , which is trying to make waves in the Chinese cable market, represented less than 1 percent of revenues. (See China MSO Taps Casa's CMTS.)
Motorola's revenue share jumped 6 percent in the period thanks in part to shipment surges in Latin America, a market where the supplier has been historically strong, says Jeff Heynen, directing analyst for broadband access at Infonetics.
Moto's gains also came at the expense of Arris, which had a sequential increase in port shipments in the second quarter, but was dealt a decrease in the average revenue per port due to a new licensing model that's starting to take hold. (See Arris Leaps Into CMTS Port Licensing and CMTS Upgrades Soften Arris Sales .)
Despite that, port pricing is beginning to stabilize for the whole sector. After sharp decreases in recent years, brought on by a new line of dense, dedicated upstream and downstream CMTS blades, pricing is now starting to hover in the range of $1,800 to $1,900 per port. "Forward-pricing has already been baked into the market at this point," Heynen says. "It doesn't mean [pricing] won't decline; it just won't decline as quickly."
Infonetics says global CMTS and edge QAM revenues rose 12 percent to $464 million in the second quarter. North American CMTS revenues declined due to slower spending, but heavier deployments in other regions more than picked up the slack.
The research firm expects global edge QAM revenues to rise 6 percent this year and to take a larger share of the cable equipment market as operators start to move to the emerging Converged Cable Access Platform (CCAP) architecture.
— Jeff Baumgartner, Site Editor, Light Reading Cable