New Technologies to Spur Capex Spending by Cable Operators, Heavy Reading Reports

North American MSOs to spend $14 billion on new gear in 2008, new report finds

Sep 8, 2008

Cable network operators in North America will increase their capex spending through at least 2010 in an effort to compete more effectively with telephone and satellite service providers across the full range of voice, data, and video services, with capex totals reaching $14 billion this year and $15 billion in 2009, according to the inaugural edition of the Cable Next-Gen Technology Quarterly Market Tracker, a brand-new service published by Heavy Reading (, the market research division of TechWeb's Light Reading (

"Cable industry infrastructure expenditures will keep rising through at least 2010, as North American MSOs upgrade their plant and equipment for the rollout of such new technologies as switched digital video [SDV], tru2way, and Docsis 3.0," says Alan Breznick, Senior Analyst at Heavy Reading and author of the Cable Next-Gen Technology Quarterly Market Tracker. "After a slow start in the first quarter of this year, MSOs began to ramp up purchases in the second quarter, and that trend is expected to continue for the second half of this year."

Sales of set-top boxes were the biggest revenue growth driver in the second quarter, according to Breznick. "Digital set-top shipments will nearly double in 2009 and stay higher over the next few years as cable operators seek to take advantage of the upcoming U.S. DTV transition by signing up new video subscribers," he says. "HD and DVR box shipments will keep rising steadily in the years ahead as well."

MSO spending on advanced technologies such as SDV, tru2way, and Docsis 3.0 is just beginning to ramp up but will accelerate quickly in 2009-2010, Breznick adds. "Deployments of tru2way interactive set-tops will finally start taking off in 2009 after years of false starts, thanks to new MSO agreements with hardware manufacturers, regulatory pressure from the FCC, and the pending threat of a proposed competing standard from the consumer electronics industry," he explains.

Heavy Reading's Cable Next-Gen Technology Quarterly Market Tracker charts the continuing shift of North American cable operators from the largely proprietary, analog networks to standards-driven, digital, IP-based networks. The new service tracks and forecasts cable MSO spending on a full range of emerging technologies to enable next-gen cable services, including:

  -- Docsis 3.0
  -- PacketCable
  -- Switched digital video
  -- tru2way (formerly known as OpenCable)
  -- CableCARD

The service tracks capex spending by cable operator, and provides quarterly updates on operator network upgrades for broadband data, voice over IP (VOIP), interactive TV, high-definition TV (HDTV), digital video recorder (DVR), and other advanced services. In addition to tracking quarterly capex data, the service offers a full four-year forecast for MSO spending across all product categories, and delivers updates on equipment certification by standards bodies such as CableLabs.

Heavy Reading's Cable Next-Gen Technology Quarterly Market Tracker covers 15 technology suppliers to the North American MSO market, including Advanced Digital Broadcast, Ambit, Arris, BigBand Networks, Casa Systems, Cisco Systems, Digeo, Harmonic, Motorola, Netgear, Pace, Panasonic, Samsung, SMC Networks, and Thomson.

The Cable Next-Gen Technology Quarterly Market Tracker is distributed in PowerPoint format. Quarterly reports may be purchased individually or as part of an annual subscription service.

For more information, or to receive a free PowerPoint demo of the Cable Next-Gen Technology Quarterly Market Tracker, please contact:

   Dave Williams
   Sales Director, Heavy Reading

   Press/analyst contact:
   Dennis Mendyk
   Managing Director, Heavy Reading

  About Heavy Reading

Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next-generation hardware and software.

About TechWeb

TechWeb (, the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise,,, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, Wall Street & Technology magazines. TechWeb also provides end-to-end services ranging from next- generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

* 13.3 million business decision-makers: based on # of monthly connections

First Call Analyst:
FCMN Contact:
CO: Heavy Reading; TechWeb; Light Reading
ST: New York

SOURCE: Heavy Reading

CONTACT: Dave Williams, Sales Director, +1-858-485-8870,, or Press & analysts, Dennis Mendyk, Managing
Director, +1-201-587-2154,, both of Heavy Reading

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