Arris Group Inc. (ARRS), a leading video and broadband gear manufacturer, recently received a boost from its largest customer, Comcast Corp. (CMCSA). Yesterday, in the CABLE SHOW 2013 in Washington, Arris declared that Comcast has started commercially deploying the company’s E6000 Converged Edged Router. Furthermore, Comcast will be launching Arris’ XG1 gateway for its innovative X1 TV service from the third quarter of 2013.
In Oct 2012, Arris unveiled its innovative converged edged router called E6000. The newly introduced E6000 router will act as a powerful C4 cable modem termination system (CMTSY) of the company while it can be converted into a Converged Cable Access Platform (:CCAP).
CCAP will help the carriers to maximize bandwidth, simplify the operational structure and evolve according to subscribers’ demand. E6000 will integrate edge QAM legacy video architecture and CMTS DOCSIS IP network of Arris so that the cable TV operators can get a readymade integrated-IP platform.
The XG1 gateway of Arris was developed after conducting RDK (Reference Design Kit) Gateway trial runs with Comcast. The next-generation web-capable platform of Comcast called “X1” offers a hybrid IP/QAM video gateway with an advanced user interface and the ability to port third-party apps that tie into a cloud-based infrastructure.
X1 offers customized applications, social media features together with personalized and dynamic TV entertainment. The XG1 gateway offers several utilities to X1 customers, including intuitive search, voice control, multi-screen facility and improved DVR experience.
According to Infonetics, the worldwide video gateway market size may leap from a mere $97 million in 2012 to around $3.6 billion in 2017. In May 2013, Arris restructured its business model after its acquisition of the Home businesses of Motorola Mobility, a subsidiary of Google Inc. (GOOG). We believe that the Arris/Motorola tie-up may pose serious competitive pressure on Cisco Systems Inc. (CSCO) in the video infrastructure market. Arris currently has a Zacks Rank #3 (Hold).Read the Full Research Report on ARRS
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