Study: CMTS-Gear Market Slows

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Yet another study pointed out that the cable-equipment market is
suffering.

The latest is from Gartner Dataquest, which examined the world market for
broadband-access equipment and, specifically, cable-modem-termination
systems.

It found that worldwide shipments of CMTS gear tailed off by more than 9.5
percent from June 2001 to June 2002. Gartner blamed cable operators' cutbacks in
capital spending on CMTS gear, which peaked in 2000 at $645.9 million.

Gartner is providing some light at the end of the tunnel, predicting that
equipment sales will begin to rise again in 2003. It will be a slow recovery,
however -- the market won't return to 2000 revenue levels until 2006, the
analyst firm predicted.

Among CMTS vendors, Cisco Systems Inc. dominated through the first half of
2002, claiming 57.3 percent of CMTS revenue among all competitors. It was
followed by ADC Telecommunications Inc. with a 19 percent share and Motorola
Inc. with 8 percent.

Data Over Cable Service Interface Specification is now the dominant
cable-modem technology, constituting 87 percent of the CMTS units shipped in the
second quarter of 2002.

Gartner is projecting that proprietary systems will dwindle to fewer than 5
percent of all shipments worldwide by next year.

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