Skip to main content

Forecasting Cable MSO DOCSIS 3.0 Adoption

CableLabs recently approved a preliminary specification for the DOCSIS 3.0 standard. It is the penultimate version which will allow cable MSOs to reduce bandwidth usage while improving performance and capabilities on their existing networks.

While not producing dramatic short-term changes to the on-demand video entertainment industry, the introduction of DOCSIS 3.0 will affect the developing competition between cable operators and telco TV providers, and because compliant new equipment will be required, will provide opportunities for some vendors.

The implications of this development are explored in a new Research Brief from ABI Research. "By delivering interactive IP video to the home over DOCSIS, cable operators shift bandwidth demand on their networks to take advantage of the innovative features offered by IP video," says principal analyst Michael Arden. "CableLabs' release of this nearly-final specification will allow vendors to start developing compatible equipment."

The transition to DOCSIS 3.0 will take place in two phases. Cable Modem Termination System (CMTS) equipment in the network must be replaced before the service can be offered. Later -- partly by a process of natural replacement -- over time the cable modems and set-top boxes in consumers' homes will also change to DOCSIS 3.0-compatible equipment, often residential gateways supporting triple-play services.

"2007 should see the first volume shipments of DOCSIS 3.0-compliant network equipment," says Arden. "Harmonic, Motorola, and Cisco, already in the field with pre-3.0 designs, will certainly be active. ABI Research expects that penetration of DOCSIS 3.0 will reach nearly 60 percent for in-use CMTS in 2011. Penetration will be slower for the larger installed base of CPE, reaching just under 40 percent in 2011."

Outside of North America, much of the interest in DOCSIS 3.0 has come from Asia. (Motorola has established a DOCSIS 3.0 research center in Singapore.) Eventually, demand for more advanced video services in Europe will spark activity there too.

Other solutions for improving bandwidth usage efficiency are being developed, but ABI Research does not believe they will gain serious traction compared to DOCSIS 3.0. On the other hand, competition from telco TV providers -- if it develops -- may spur the cable operators to accelerate the DOCSIS 3.0 transition process.

Popular posts from this blog

Banking as a Service Gains New Momentum

The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without