DOCSIS 3.0 Will Drive Revenue Growth for CMTS Over Next Five Years, According to Dell'Oro Group

Business Wire, July 31, 2008

Cable's Competitive Response to High-Speed VDSL and PON Networks

REDWOOD CITY, Calif. -- Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, announced today that it forecasts modest revenue growth for Cable Modem Termination Systems each year through 2012 driven by cable operators upgrades to recently introduced high-speed DOCSIS 3.0 equipment. The report also shows that over the same period, revenue for high-speed VDSL and PON infrastructure equipment will be largely driven by telecom service providers' desire to offer TV over broadband.

"Marketing and perception are significant drivers for sales of access infrastructure equipment, especially for cable operators," said Tam Dell'Oro, Founder of Dell'Oro Group. "While telecom operators are upgrading access networks with VDSL and PON to enable new services such as TV over broadband, Cable operators are upgrading for much different reasons. Cable's TV service is not deployed over their access network and although increasing internet traffic is driving higher bandwidth requirements, they are much lower than those for telecom operators. However, to stay competitive in the broadband speed race, cable operators will upgrade to DOCSIS 3.0 especially in areas where telecom operators are deploying VDSL and PON," added Dell'Oro.

About the Report

The Dell'Oro Group 5-Year Forecast Report provides a complete overview of the broadband access industry, with tables covering manufacturers' revenue, average selling prices, and port/unit shipments for Cable, DSL, and PON equipment. Network infrastructure equipment includes Cable Modem Termination Systems (CMTS), Digital Subscriber Line Access Multiplexers ([DSLAMs] by technology ADSL, ADSL2 , G.SHDSL, VDSL), and PON Optical Line Terminals (OLTs). Customer Premises Equipment (CPE) technology reflects Voice-over-IP (VoIP) or data-only. To purchase this report, please contact Emily Kendall, call 1.650.622.9400 x223 or email Emily@DellOro.com.

About Dell'Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enable component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at 1.650.622.9400 or visit www.DellOro.com.