Report: CCAP deployments will drive further price erosion

Infonetics Research took a deep dive on the cable market and found that although it's still early in the deployment of converged cable access platforms (CCAP), pricing is eroding as channel volumes increase. Analyst Jeff Heynen said 2013 will be the "nadir of recent and future years," noting that good times are still ahead as "channel volumes across the board should more than offset the continued ASP erosion."

The firm noted that although some deployments of CCAP occurred this year, the majority of CCAP shipments won't begin until 2014, when vendors make integrated broadcast and narrowcast video QAMs and DOCSIS downstreams available on the same RF ports.

The Infonetics report also found that the global CMTS and edge QAM market declined 4 percent in the second quarter of 2013 to $313 million, primarily due to lower-cost CMTS gear.

In North America, Infonetics found that CMS and edge QAM revenue was down 27 percent in the second quarter of 2013 compared to second quarter 2012 due to the turn-up of a large number of software licenses.

This latest Infonetics research follows a similar report the company put out in June which predicted that cable operators will likely increase their investment in adaptive bitrate gear and transcoding technology so they can battle competition from Netflix (Nasdaq: NFLX) and other online video firms.

For more:
- see this press release

Related articles:
Infonetics sees increased demand from operators for transcoding technology
Infonetics: Cisco, EchoStar, Motorola were biggest U.S. set-top vendors in Q1
Infonetics: Operators dig Apple HTTP Live Streaming, HTML5

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