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DOCSIS 3.0 Market Flourishing

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Major cable TV operators in the U.S. are aggressively deploying high-speed Wideband network based on the DCOSIS 3.0 technology. DOCSIS 3.0 supports throughput of at least 100 Mbit/second. With DOCSIS 3.0, cable TV operators are now able to offer one of the fastest Internet speeds available in the market.

A recent report by Infonetics Research Inc. stated that the worldwide customer premises equipment (CPE) market size was $2.7 billion in the second quarter of 2013, up 8% sequentially and 29% year over year. Infonetics is hopeful that at this rate, the global broadband CPE market size will exceed $10 billion in 2013.

DOCSIS 3.0 is facilitating cable MSOs to explore new markets. The slump in the basic video market is getting compensated by broadband services in the cable telephony and high-speed Internet markets. Escalating demand for video-on-demand (watching movie on the Internet) has made DOCSIS 3.0 essential for cable MSOs.

In addition, demand for online gaming and downloading of various multimedia applications have also increased. Comcast Corp. (CMCSA), the largest cable MSO in the U.S., has completed its DOCSIS 3.0 deployment.

Equipment vendors like Arris Enterprises Inc. (ARRS) and Cisco Systems Inc. (CSCO) will largely benefit from the increased deployment of the DOCSIS 3.0 technology. After the acquisition of the Home business division of Motorola Mobility, a subsidiary of Google Inc. (GOOG), Arris has become the largest player in the broadband DOCSIS 3.0 CPE market.

In the second quarter of 2013, the CPE segment of Arris generated $663 million of total revenue, up by a whopping 344% year over year. The company stated that 90% of its total CPE shipment was for DOCSIS 3.0 network.

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