Why CommScope Bought LiquidxStream

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Jeff Baumgartner 12/5/2012 | 5:03:29 PM

re: Why CommScope Bought LiquidxStream

That, or they are really banking on a CMAP migration path that involves a downstream-only version of the Access Shelf.  It'll help them blaze a path to CMAP, if that's the direction they choose, but whether that will lead to a path of revenue and growth glory...   I like CommScope's chances much better than I liked LiquidxStream's when it was a startup that was going it alone.

You're good at questioning when cmap/cesar will take off and when XYZ plan will turn into ROI, but rarely offer any answers. Care to take a stab?  JB

 

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ycurrent 12/5/2012 | 5:03:29 PM

re: Why CommScope Bought LiquidxStream

So why did CommScope buy LiquidxStream?

Perhaps, with CommScope's diverse portfolio (and private equity ownership), it will be insulated from the low edgeQAM margins and the who-knows-when CMAP/CESAR revenues will be realized?

Most likely a bargain sale.

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ycurrent 12/5/2012 | 5:03:28 PM

re: Why CommScope Bought LiquidxStream

With Comcast, Time Warner and others backing CMAP/CESAR, it is hard to challenge their timelines; it is important to them and they will likely move fwd with it, where it makes sense.

Ironic, however, that in the recent past some viewed CMAP as potentially derailing DOCSIS 3 momentum.  However, the opposite seems to be the case.

As long as CMTS sales continue - ARRIS, Cisco, Motorola Mobility - then it is likely harder for CMAP/CESAR to get a solid entrance/footing.

Market size and timing are the real questions; if I had answers, I'd probably not be in the "posting" business. But point taken that questions are simpler than answers.

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Jeff Baumgartner 12/5/2012 | 5:03:28 PM

re: Why CommScope Bought LiquidxStream

But agree that they probably didn't get close to top dollar.  Several companies looked at them, but i never got the sense that there was much in the way of a bidding war going on.   JB

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Jeff Baumgartner 12/5/2012 | 5:03:28 PM

re: Why CommScope Bought LiquidxStream

True. If someone says trials will start this year and deployments next year, that still doesn't really help solve the ROI riddle.  But you have to wonder which of the entrants will have the stomach to stay in long-term, so we'll see an eventual shakeout even if there's a relatively small group of vendors to be shaken out and we might witness a CMTS replay that saw companies like BBND, Juniper, Terayon, 3Com, Com21, et al,  scrap product lines or bug out.  The cable modem market used to have a huge vendor roster, but scared off many seemingly solid wannabees with deep pockets  (Toshiba, 3Com, Ericsson,etc.) when margins became wafer thin. The challenges won't be much different for the vendors when CMAP/CESAR takes hold... it's going to be a bumpy ride.    JB

 

 

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