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Cable TV Head-Ends: Fixed Mobile Convergence (FMC) Powers Cable TV Counterpunch to IPTV

Product Type: Market Research Report
Published by: In-Stat
Published: October 2006
Product Code: R97-2574
Description
The worldwide Cable TV industry is in a race to provision a “three screen” telecommunications service.

Super Headends provide the economies of scale needed to deliver the greatest number of services, over the greatest geographical reach, at the lowest possible cost.

Modular Cable Modem Termination Systems (Modular CMTS) equipment is being brought into play to upgrade High Speed Data services to compete against ADSL, VDSL, and Fiber-to-the-Home.

More Voice-over-IP equipment is also being purchased.

More QAM channels are being set up to support more services, being delivered to more subscribers.

Fixed Mobile Convergence, or FMC, is being developed using Internet Protocol Multimedia Subsystems (IMS) that come from the mobile market, and is adapting the IMS equipment, protocols, and services to work with Cable’s Data over Cable standards.

This report provides detailed forecasts for the number of headends, QAM hubs, and FMC infrastructures being newly built, as well as upgrades of existing locations. In-Stat expects that the value of Internet Protocol infrastructure equipment will grow to more than US$ 2.1 billion in 2010.
Table of Contents

Executive Summary

Methodology

Previous Reports That Provide Useful Background Information

Cable TV Responds to the TelcoTV (IPTV) Challenge

Telcos Are Emerging From Ten Years of Deregulation

Triple Play and Quad Play Coming from Telcos

Telcos Are Rolling Out Flexible Internet Protocol Infrastructures

Cable TV Operators Need to Respond In Four Ways

Defend Their Existing Customer Base

Expand Their Service Offerings to Include Mobility

US Cable Operators in Joint Venture with Sprint Nextel

NTL Acquires Virgin Mobile to Launch Quad Play

Expand Their Revenues Due to Advertising

Expand Their Customer Base to Include Businesses

Cox Communications as a “Thought Leader” for Cable TV Business Services

A Quick Look at North America’s Cable TV Triple Play Market: RGUs and ARPU

Revenue Generating Units (RGUs)

Average Revenue per Unit (ARPU)

Snapshot of North America Triple Play Service Subscribers

Plenty of Room Left for Long-Term Growth

Approximate Value of North American Triple Play Feature Offerings

Quad Play Puts All Content into a Blender of New Opportunities

Professional Content

Three Kinds of Professional Content Companies

Personal Content

Personal Content Usage Rights Controlled by Consumers

Personal Content Also Being Accepted Onto Professional Content Services

Communications Content

Triple Play Depends on Communications Content

Quadruple Play Further Expands the Importance of Communications Content

Session Initiation Protocol (SIP) Will Benefit All Three Kinds of Content

Communications Services Are Blending with Professional Content Services

Content Aggregators Ride on Communications Services

A Natural Yin and Yang between Content Aggregators and Communications Services Will Push, then Pull, the Market Forward in Multiple, Overlapping, Steps

High Definition Content Changes the Playing Field, Will Force Network Upgrades

By 2010, Some Homes Will Need 100Mb/s

Comcast is the Bellwether of the Cable TV Industry

Comcast Is a Major Content Aggregator and Distributor with Multiple Nation-Wide Networks, Both Via Satellite and Via Fiber Optic

Comcast Can Lead Cable TV into Mobile Services

Net Insight’s Digital TV Platform: An Automated Approach to Cut Costs

Nimbra-Enabled Solution Is an Example Super Headend

Net Insight-Enabled Norkring Network for DVB-T in Norway

Nimbra Platform Designed for Quality of Service

Net Insight Solution Supports Voice and Mobile Video Services

Maintains GPS-Accurate Timing for All Network Edge Points

CableLabs Initiatives Will Spur Continued Growth

Society of Cable Telecommunications Engineers (SCTE)

SCTE Standards Provide International Reach

Why Cable TV Mobile Services Will Be Disruptive

Cable TV Operators Are More Nimble than People Think they Are

Cable Infrastructure Forecasts

Cable TV Systems Are Emerging as Full Service Telecommunications Providers

Key Industry Trends

Increasing Use of High Definition TV Programming

Expanding Video-On-Demand Infrastructure

Advertising Insertion

Upgraded Cable Modem Video Services with Targeted Advertising

Video Content and Targeted Advertising for Mobile Services

Switched Digital Video to Conserve Bandwidth

Increase to 1GHz Bandwidth in the Final Mile

Channel Bonding for Cable Modems

Special Approaches to Support Business Users

Eventual Move to 100% Digital Final Mile

Fixed Mobile Convergence (FMC)

Mid-Stream Upgrades to Create Opportunities for New Players to Approach the Cable TV Industry

Super Headends by Region

Local Headends by Region

QAM Channels by Region

Broadcast QAM, VOD QAMs and IP-QAM Channels

Newly Built QAM Hubs by Region

Upgraded QAM Hubs by Region

Estimate of QAM Units Shipped by Region, by Category

Fixed Mobile Convergence Infrastructure by Region

North American Cable Infrastructure Equipment Forecast by Category

European Cable TV Infrastructure Equipment Forecast by Category

Asian Cable TV Infrastructure Equipment Forecast by Category

ROW Cable TV Infrastructure Equipment Forecast by Category

Regional Summaries and Comparisons

Worldwide Summaries by Category

Profiles of Key Companies

Cisco Systems

Cisco-Linksys

Linksys Home and Small Business Media Gateways

Media Gateways Enable Managed Services

Scientific Atlanta Acquisition

Scientific Atlanta Provides Four Growth Vectors

Cisco Acquires Arroyo Video Solutions, Inc.

Arroyo Provides Low-Cost, High Performance, Video On Demand

Cisco Announces CRS-1 Core Router Improvement

Wideband Channel Bonding

Motorola, Inc. Connected Home Solutions

Kreatel IPTV Set Top Box Acquisition

Broadbus Technologies Video Server Acquisition

An Ever-Expanding Portfolio of Solutions

MediaCipher™ IP

Channel-Bonding Solutions for Very High Speed Data

Cable MESH for Metropolitan Area WiFi Services

1GHz Products with Enhanced Upstream Bandwidth

Switched Digital Video Network Architecture

Juniper Networks, Inc.

Juniper Partners with Motorola on Modular CMTS

Juniper’s Expanding Portfolio of IP Solutions for Cable TV Multiplay

Expanding Business with Cox Communications

SDX-300 Service Deployment System for Packet Cable Multimedia (PCMM)

Juniper’s Open IPTV and Multiplay Initiative

Four Vectors of Growth Enabled by Juniper Networks

TANDBERG Television ASA

Any Platform to Any Device Solutions

World Leader for Advanced Video Codecs (AVC) and IP Networking Enables Video to Any Device Over Any Platform

OpenStream Digital Services Platform® Enables VOD Delivery

AdPoint On-Demand Advertising Platform® Supports Zones

SkyStream Acquired by TANDBERG Television

ARRIS Group, Inc.

ARRIS Labs Provides Unparalleled Interoperability Expertise

ARRIS FlexPath™ and Cadant® C4™ CMTS Enable Wideband

FlexPath™ Protects Investment in DOCSIS® 1.1 and 2.0 Modems

Cadant® G2 IMS™ Intelligent Management System

Fixed Mobile Convergence Is On the Way from ARRIS

Lucent Technologies

Merger with Alcatel

Lucent Delivers Value over IP™

Lucent Advantages for Cable TV MSOs

Lucent Working with CableLabs, SCTE, CTAM, NCTA

Lucent’s Leading IMS Technology Being Adapted for PacketCable 2.0 and Open Cable Applications Platform (OCAP)

Communications Applications in the Home, and On the Go

Lucent IMS is an Enabler for Sprint Nextel Joint Venture

Success with Voice-over-IP Offerings

Managed and Hosted Services

Lucent Worldwide Services Organization

Lucent’s MiViewTV™ Concept May Enable Personalized TV Delivery across Wired and Wireless Boundaries

Alcatel

Alcatel Merger with Lucent Technologies

Alcatel Partnership with Microsoft TV for IPTV

IPTV and IMS Fixed Mobile Convergence for TDC Denmark

Triple Play Service Delivery Architecture for Cable TV MSOs

Alcatel’s 7750 Service Router

Alcatel’s 7450 Ethernet Service Switch

Alcatel’s 7342 G-PON

C-COR, Incorporated

C-COR Driving Forward with Success in Europe

Four Main Focus Areas

Harris Broadcast Communications

Focusing On Pulling “Content” Into the Future—Profitably

Cable TV Systems Will Need Local Content

Cable TV Systems Will Need Local Control of Their Local Content

Analog Cut-Off to Impact Local TV Broadcasters, and Cable TV Can Benefit

Local Cable Can Host Community-Based Content Sharing Services

Community-Based Content Could Go to TV Sets, PCs, or Cell Phones

Harris H-Class Platform Enables Local Content for Cable TV

Cable TV MSOs with Nationwide Fiber Optic Backbones Could Benefit

Harris Also Provides Mobile TV Capabilities

Harris has Been Delivering Targeted Advertising for Decades

Local Cable TV Ad Sales Already Supported by Harris Broadband Solutions Novar Traffic and Billing Software

BigBand Networks

BigBand’s Platform Approach to Digital Cable and IP Services

Switched Digital Broadcast is Big Band’s Forte’

Big Band Cuda? CMTS Demonstrates 100Mb/s at IBC

Harmonic

ProStream™ 8000 Digital Mosaic Wins International Award

Tiling Multiple Video Streams Will Become a Service Enhancer

Harmonic Acquires Entone Video Networking Software

Scopus Video Networks Ltd.

Scopus’ Intelligent Video Network™

Digital Ad Insertion with IVG 7500 Intelligent Video Splicer

Scopus UID-2912 Dense Edge IP Decoder

Network Management and MPEG-4/AVC for IP Video Networks

ECI Telecom

Metro Area Networks for All Service Providers

Europe’s Cable TV Systems Building Metro Area Networks

Fixed Mobile Convergence Driving Growth

Telcordia®

Telcordia® Maestro™ IMS Portfolio

Telcordia Cable TV Solutions Enable a Competitive Edge

Huawei Technologies Co., Ltd.

Huawei Digital Media and Entertainment (DME) Solutions

Huawei Mobile Networks and IMS for Fixed Mobile Convergence

Nortel Networks Corporation

Optibase

Optibase Demonstrates Picture-in-Picture with UTStarcom

RGB Networks

RGB Announces Third Round Venture Funding

Terayon Communication Systems, Inc.




List of Tables




Table 1. Worldwide Forecast for Cable TV Infrastructure Equipment (US$ Millions, Annual Growth Rate, Compound Annual Growth Rate)

Table 2. Snapshot of North America Triple Play Service Subscribers (Subscribers by Service Taken)

Table 3. Relative Penetration of Triple Play Services (Number of Subscribers by Service, Percent of Total Subscribers)

Table 4. Approximate Value of North American Triple Play Feature Offerings (Annual Value in US$ Thousands, Annual Growth Rate)

Table 5. Cable TV Newly Built Super Headends by Region (Units, Annual Growth Rate, Percent of Total, CAGR)

Table 6. Typical Equipment Costs for Newly Built Super Headends by Region (US$ Millions, CAGR)

Table 7. Annual Value of Equipment in Newly Built Super Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 8. Cable TV Upgraded Super Headends by Region (Units, Annual Growth Rate, Percent of Total, CAGR)

Table 9. Typical Equipment Costs for Newly Built Super Headends by Region (US$ Millions, CAGR)

Table 10. Annual Value of Equipment in Upgraded Super Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 11. Annual Value of Newly Built and Upgraded Super Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 12. Cable TV Newly Built Local Headends by Region (Units, Annual Growth Rate, Percent of Total, CAGR)

Table 13. Typical Equipment Costs for Newly Built Local Headends by Region (US$ Millions, CAGR) 38

Table 14. Annual Value of Equipment in Newly Built Local Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 15. Cable TV Upgraded Local Headends by Region (Units, Annual Growth Rate, Percent of Total, CAGR)

Table 16. Typical Equipment Costs for Upgraded Local Headends by Region (US$ Millions, CAGR)

Table 17. Annual Value of Equipment in Upgraded Local Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 18. Annual Value of Newly Built and Upgraded Local Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 19. Calculations of Costs for Newly Built QAM Hubs in North America (QAMs per Hub, Cost US$, # of Digital QAM Channels)

Table 20. Calculations of Costs for Newly Built QAM Hubs in Europe (QAMs per Hub, Cost US$, # of Digital QAM Channels)

Table 21. Calculations of Costs for Newly Built QAM Hubs in Asia (QAMs per Hub, Cost US$, # of Digital QAM Channels)

Table 22. Calculations of Costs for Newly Built QAM Hubs—ROW (QAMs per Hub, Cost US$, # of Digital QAM Channels)

Table 23. Cable TV Newly Built QAM Hubs by Region (Units, Annual Growth Rate, Percent of Total, CAGR)

Table 24. Typical Equipment Costs for Newly Built QAM Hubs by Region (US$, CAGR)

Table 25. Annual Value of Equipment in Newly Built QAM Hubs by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 26. Calculations of Costs for Upgraded QAM Hubs in North America (QAMs per Hub, Cost US$, # of Digital QAM Channels)

Table 27. Calculations of Costs for Upgraded QAM Hubs in Europe (QAMs per Hub, Cost US$, # of Digital QAM Channels)

Table 28. Calculations of Costs for Upgraded QAM Hubs in Asia ((QAMs per Hub, Cost US$, # of Digital QAM Channels)

Table 29. Calculations of Costs for Upgraded QAM Hubs in ROW Countries (QAMs per Hub, Cost US$, # of Digital QAM Channels)

Table 30. Cable TV Upgraded QAM Hubs by Region (Units, Annual Growth Rate, Percent of Total, CAGR)

Table 31. Typical Equipment Costs for Upgraded QAM Hubs by Region (US$, CAGR)

Table 32. Annual Value of Equipment in Upgraded QAM Hubs by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 33. Annual Value of Newly Built and Upgraded QAM Hubs by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 34. Number of QAM Modulator Units Shipped by Region, by Category (Number in Units, Annual Growth Rate, Percent of Total, CAGR)

Table 35. Cable TV Newly Built FMC Service Infrastructure by Region (Units, Annual Growth Rate, Percent of Total, CAGR)

Table 36. Typical Equipment Costs for Newly Built FMC Infrastructure by Region (US$ Millions, CAGR)

Table 37. Annual Value of Newly Built FMC Service Infrastructure by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 38. Cable TV Upgraded FMC Service Infrastructure by Region (Units, Annual Growth Rate, Percent of Total, CAGR)

Table 39. Typical Equipment Costs for Upgraded FMC Infrastructure by Region (US$ Millions, CAGR) 61

Table 40. Annual Value of Upgraded FMC Service Infrastructure by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 41. Annual Value of Newly Built and Upgraded FMC Service Infrastructure by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 42. North American Cable Infrastructure Equipment Value by Category (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 43. European Cable Infrastructure Equipment Value by Category (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 44. Asian Cable Infrastructure Equipment Value by Category (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 45. ROW Cable Infrastructure Equipment Value by Category (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 46. Value of Cable Infrastructure Equipment Value by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

Table 47. Worldwide Value of Cable Infrastructure Equipment Value by Category (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)




List of Figures




Figure 1. Relative Annual Value of North American Triple Play Feature Offerings (Annual Value in US$ Thousands)

Figure 2. Net Insight’s Remotely-Operated Digital Terrestrial Network System

Figure 3. Annual Value in Newly Built and Upgraded Super Headends by Region (US$ Millions)

Figure 4. Annual Value of Newly Built and Upgraded Local Headends by Region (US$ Millions)

Figure 5. Annual Value of Newly Built and Upgraded QAM Hubs by Region (US$ Millions)

Figure 6. Annual Value of Newly Built and Upgraded FMC Service Infrastructure by Region (US$ Millions)

Figure 7. North American Cable Infrastructure Equipment Value by Category (US$ Millions)

Figure 8. European Cable Infrastructure Equipment Value by Category (US$ Millions)

Figure 9. Asian Cable Infrastructure Equipment Value by Category (US$ Millions)

Figure 10. ROW Cable Infrastructure Equipment Value by Category (US$ Millions)

Figure 11. Value of Cable Infrastructure Equipment Value by Region (US$ Millions)

Figure 12. Worldwide Value of Cable Infrastructure Equipment Value by Category (US$ Millions)

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