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TMCNet: DOCSIS 3.0 - The Latest Initiative

[August 13, 2009]

DOCSIS 3.0 - The Latest Initiative

Aug 13, 2009 (Zacks.com via COMTEX) -- Major cable MSOs (multi service operators) in the U.S. are aggressively deploying DCOSIS 3.0 technology. Intense competition among cable operators, satellite carriers and telecom service providers for broadband market share has forced the cable MSOs to opt for cost effective bandwidth enhancing technology for high-speed network.

DOCSIS 3.0 (also called Wideband network) is a digital channel bonding technique that creates one larger and faster logical pipe to support throughput of at least 100 Mbit/second. With DOCSIS 3.0, cable operators are now able to offer one of the fastest Internet speeds available in the market.

Comcast Corp. (CMCSA), the largest MSO in the U.S., has announced that it will upgrade around 40 million homes and businesses of the company's existing networks with next-generation super-fast wideband technology by the end of 2009. Cablevision System Corp. (CVC) is also increasingly deploying DOCSIS 3.0. Time Warner Cable Inc. (TWC) is also likely to follow suit in 2010.

As residential VoIP and HDTV services continue to grow, operators are dealing with increased network traffic driven by strong demand for video download and file sharing. This massive requirement for data transport has encouraged the cable operators seeking to improve their transport offerings.

Furthermore, the U.S. telecom giants are gradually expanding their fiber-optic networks to take the fight to the cable MSOs. Verizon Communications (VZ) with FiOS network and AT&T (T) with U-Verse network are likely to make the broader entertainment, information, and communications market highly competitive.

Broadcom Corp. (BRCM) and Texas Instruments (TXN), which make chipsets for DOCSIS 3.0 modems, have estimated that deployment of this technology will double by 2010. Recently, Motorola (MOT) launched the world's first retail DOCSIS 3.0 cable modem. Privately held Massillon Cable TV Inc. is rolling-out DOCSIS 3.0 on a large-scale using Motorola modem.

Offering high-speed Internet access has become essential for service providers since preference for video-on-demand (watching movie on the Internet) has increased significantly among customers. In addition, demand for online gaming and downloading of various multimedia applications have also increased.

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