MONTEREY, Calif., March 21, 2016 /PRNewswire/ -- Announced today, SNL Kagan, a group within S&P Global Market Intelligence, released research showing that global cable operators spent 2015 taking advantage of low downstream channel prices and boosted shipments of converged cable access platforms (CCAP) to record levels. Total Data over Cable Service Interface Specification (DOCSIS) downstream channels jumped 41% for the full year to top 6 million, according to SNL Kagan estimates.
Cable operators continue to focus on ramping up downstream bandwidth to stay ahead of growing fiber to the home (FTTH) deployments by telecommunications operators and other Internet Service Providers (ISPs), including Google Fiber and municipal fiber networks.
Despite the significant increase in channels, revenue dropped 3% from 2014 to 2015, to $1.74B, as competitive pricing coupled with a rise in software licenses helped push down the average price per downstream channel.
ARRIS, a company that provides hardware and software to cable operators, closed out the year as the global revenue leader, holding 53% of total revenue among providers of cable broadband infrastructure. ARRIS benefitted immensely from the focus of its primary North American customers, including Comcast Corp. and Time Warner Cable Inc., on dramatically increasing throughput to remain competitive with Verizon Communications Inc., AT&T Inc., CenturyLink Inc., Google Fiber and upstart ISPs.
"The imminent availability of DOCSIS 3.1 linecards and full-spectrum channels won't slow the continued purchase and deployment of current DOCSIS 3.0 channels as cable operators must continue to increase throughput to reduce the likelihood of churn among their broadband subscribers," said Jeff Heynen, Sr. Research Analyst for SNL Kagan.
About SNL Kagan
SNL Kagan, a division of S&P Global Market Intelligence, is a comprehensive resource for financial intelligence in the media and communications sector, including the broadcasting, cable, entertainment, motion picture, telecom, wireless, satellite, publishing and new media industries. The SNL Kagan suite of products integrates breaking news, comprehensive data and industry analysis into an electronic database available online and updated around the clock. For more information, visit www.snlkagan.com.
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