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Cable Modem Termination System Growth

Infonetics Research reports that cable modem termination system (CMTS) revenue jumped 36 percent sequentially in the first quarter of 2008 -- to $279 million -- making 1Q08 the largest single quarter on record.

The Infonetics reports demonstrates that downstream and upstream CMTS port shipments also hit an all-time quarterly high. Universal edge QAM (UEQ) revenue and channel shipments are also up in 1Q08.

2008 is on track to be a banner year for the cable broadband aggregation hardware market, as cable TV operators look to DOCSIS 3.0 to fend off residential FTTx offerings from telco incumbents and competitive providers, and as they launch new services targeting the small and medium business (SMB) accounts of incumbent local exchange carriers.

"The first quarter was driven by strong performance by Cisco, whose CMTS port shipments jumped 64 percent sequentially," said Mark Showalter, directing analyst for broadband networks at Infonetics Research.

Highlights from the Infonetics market study include:

- Cisco holds the lead in CMTS revenue in every region except the Caribbean and Latin America (CALA), where Motorola is #1 after posting a significant revenue increase, overtaking ARRIS, who is now the #2 CMTS market share leader in CALA.

- The number of worldwide standard and wideband cable broadband subscribers is forecast to top 97 million in 2011.

- By CY11, CMTS will make up 77 percent of the total cable broadband aggregation market, and UEQs will make up 23 percent as more MSOs use UEQs to bond downstream channels and provide more bandwidth for data and video services.

Their report provides worldwide and regional forecasts and market size for cable broadband subscribers split by standard vs. wideband, CMTS upstream and downstream ports and revenue, and universal edge QAM channels and revenue.

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