Comcast Deal Puts Cedar Point in Play
Comcast's selection of Cedar Point Communications as its primary vendor of IP telephony infrastructure equipment this week makes the start-up a likely candidate for acquisition as larger cable and telecom equipment suppliers look to strengthen their position with the world's largest cable operator. At the top of the list is Motorola, already a Cedar Point partner. Rumors have circled for more than a year about a Cedar Point sale to Motorola, though both companies have denied the speculation.
In the IP infrastructure segment, Motorola is currently a key supplier of DOCSIS CMTS and cable modems to Comcast, as well as E-MTA IP phone adapters, not to mention digital video headend gear and set-top boxes. With the addition of Cedar Point's PacketCable platform, Motorola would become the only vendor with every essential cable IP and video product element in its portfolio. With its strong international cable sales channels, Motorola could help driver traction for Cedar Point's integrated call management server (CMS) and media gateway platform overseas. Additionally, Cedar Point's solution could have value for Motorola's wireless infrastructure business.
Another possible Cedar Point buyer is Motorola rival in the CMTS and E-MTA arena Arris Inc., though the company has demonstrated a penchant for only acquiring start-ups down on their luck at bargain basement prices, rather than high fliers.
In the wake of Cedar Point's Comcast deal, a key question is what will happen to start-up Syndeo, which has yet to gain traction as a principal CMS supplier to a major North American MSO.