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Cable Modem Sales Growth Dependent on New Subscribers and New Technologies According to Dell'Oro Group 5-Year Forecast.

Business Editors/High-Tech Writers

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Jan. 29, 2003

According to a recently published report from Dell'Oro Group, worldwide yearly sales of cable modem access equipment are forecast to grow from $1.0 B in 2002 to $1.8 B in 2007. This revenue forecast includes both Cable Modem Termination Systems (CMTS) and Customer Premises Equipment (CPE).

"In the short-term, there are likely to be additional declines in cable modem equipment revenue, however there is plenty of room for future growth," said Paul Baranello, a Senior Analyst at Dell'Oro Group. "There are two primary reasons why we expect equipment revenue to grow long-term. Firstly, the Service Providers we have spoken with indicated their desire to advance high-speed data service from the early-adopter stage to a mainstream service. Dell'Oro Group predicts that the worldwide cable modem subscriber base will increase from 22 million at the end of 2002 to 77 million by the end of 2007. Secondly, we believe that Service Providers will begin replacing old equipment in 2004 and beyond with new devices that can provide higher bandwidth and additional features. For example, a Service Provider may eventually be willing to replace their installed base of DOCSIS 1.0 or 1.1 equipment with new DOCSIS 2.0 equipment that can deliver higher upstream speeds. As the high-speed data market matures, Service Providers will become interested in any technological advantage they can acquire over their competitors."

About the Report

The Access 5-Year Forecast Report offers a complete overview of the industry with tables covering revenue, unit, and price forecasts for various technologies: DSL, Cable Modem, and Dial Modem.

About Dell'Oro Group

Dell'Oro Group is a market research firm that specializes in providing accurate and timely data on the networking and telecommunications industries. Dell'Oro Group reports focus on detailed quarterly analysis of market size, market share, port/unit shipments, and average selling prices as it pertains to markets and vendors.
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Publication:Business Wire
Date:Jan 29, 2003
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