Skip to main content

Cable MSOs Invest in Digital Set-Top Boxes

Cable system operators are reaping benefits from their past investments in infrastructure upgrades, but they haven't yet finished paying the full bill. Kagan Research finds capital expenditures by the six largest publicly-reporting U.S. cable operators rose in double digits in Q1 2006 � a 14 percent increase.

That CapEx is divided into six component categories, of which the most closely-watched is consumer premises equipment (CPE), the largest category, encompassing set-top boxes, cable modems and multimedia terminal adaptors (MTAs) that enable IP voice services. Total CPE spending rose 19 percent for the six cable system operators in the January to March period, compared to the same quarter a year earlier, according to Kagan. The only consolation is that it represents a deceleration from a torrid 30 percent CPE increase a year ago, in Q1 2005.

"It's still going up at a double-digit rate because cable companies are buying more digital set-top boxes," notes senior analyst Ian Olgeirson. "Adding to the burden is demand for HD and DVR-enabled boxes, which carry higher price tags than basic boxes." Kagan estimates 45 percent of U.S. cable subs are digital, which is quickly replacing old-tech analog.

In the Q1 '06 spending survey, the six MSOs � Cablevision, Charter, Comcast, Insight, Mediacom and Time Warner � spent $1.97 billion in all six categories of CapEx. The CPE category accounts for over half of the total. The other five categories are scalable infrastructure (typically head-end equipment), line extensions, upgrades/rebuild, support (a catch-all category for the rest of capital spending) and commercial services.

Popular posts from this blog

GenAI: A New Era in Business Transformation

The advent of artificial intelligence (AI) has ushered in a new frontier of innovation, with Generative AI (GenAI) at the forefront. At the brink of this revolution, it's crucial to understand the current GenAI adoption and its implications for commerce worldwide. A recent poll conducted by Gartner provides valuable insights into this emerging trend and the potential upside opportunities. Generative AI Market Development The poll, which included 1,419 executive leaders, indicates a significant shift in the corporate world's perception and adoption of GenAI. The data reveals that 45 percent of respondents are currently piloting GenAI, while another 10 percent have put it into production. This is a substantial increase from a similar poll conducted in March and April 2023, where only 15 percent were piloting and 4 percent were in production. GenAI is no longer a mere buzzword; it has become a strategic focus for organizations worldwide. As Frances Karamouzis, VP Analyst at Gartne

GenAI Revolution: The Future of B2B Sales Apps

When B2B buyers consider a purchase they spend just 17 percent of that time meeting with vendors. When they are comparing multiple suppliers‚ time spent with any one salesperson is 5 or 6 percent. Self-directed B2B buyer online research has already changed procurement. IT vendors are less likely to be involved in solution assessment. Now, more disruptive changes are on the horizon. By 2028, 60 percent of B2B seller work will be executed through conversational user interfaces via Generative Artificial Intelligence sales technologies -- that's up from less than 5 percent in 2023, according to Gartner. Generative AI Market Development "Sales operations leaders and their technology teams must prepare for the convergence of new forms of artificial intelligence, dynamic process automation, and reinvented deal-planning activities that will transform the sales function," said Adnan Zijadic, director analyst at Gartner . According to the Gartner assessment, Generative AI (GenAI) s

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -