Cable Modem Termination Systems (CMTS) Market Revenues Continued to Decline in the Third Quarter

Growth Expected to Resume by Early 2008

Redwood City, Calif. – November 15, 2007 – According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, Cable Modem Termination Systems (CMTS) market revenues fell for the third consecutive quarter in the third quarter of this year and to their lowest level in two years. The decline began earlier this year after 33 percent revenue growth in 2006 when Cable operators were buying large numbers of ports to enable higher bandwidth to stay competitive with Telecom service providers as well as meet increasing demand on their networks.

“In 2007, Cable operators have been absorbing the large purchases from last year and trying to sort out vendor’s claims on capabilities of next generation wideband and modular CMTS equipment that manufacturers have introduced this year,” said Tam Dell’Oro, President of Dell’Oro Group. “With Cable operators now in the planning stages on how to incorporate next generation CMTS equipment and with bandwidth requirements continuing to increase, we expect growth in this market to resume in the first half of 2008,” Dell’Oro added.

The report also shows that Cisco leads this market followed by Arris and Motorola. BigBand Networks, a distant fourth, recently announced they are exiting the CMTS market.

About the Report

The Dell’Oro Group Quarterly Access Report provides complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, and port/unit shipments for Cable, DSL, and PON equipment. Network infrastructure equipment includes Cable Modem Termination Systems (CMTS), Digital Subscriber Line Access Multiplexers ([DSLAMs] by technology ADSL, G.SHDSL, and VDSL), and PON Optical Line Terminals ([OLTs] by technology BPON, EPON, and GPON). The report also covers Cable and DSL Customer Premises Equipment (CPE) technology and PON Optical Networking Terminals (ONTs). To purchase this report, call Margaret Miles +1.650.622.9400 x225 or email Margaret@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enable component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.