Arris, Liwest Pen CCAP Deal to Boost Internet Speed - Analyst Blog

Leading video and broadband gear manufacturer Arris Group Inc. ARRS has entered into a deal with Austrian cable operator Liwest Kabelmedien GmbH to deploy its Converged Cable Access Platform (CCAP) equipment. Liwest will utilize Arris' E6000 converged edge router (CER) to offer Inter services at a speed up to 250 Mbps. Liwest already deployed Arris' TG682 cable modem system and plans to upgrade Internet speed up to 1 Gbps in the long-term.

In Oct 2012, Arris launched the innovative E6000 CER which acts as a powerful C4 cable modem termination system (CMTS) for the company and can be converted into a CCAP ecosystem as well. CCAP helps carriers maximize bandwidth, simplify operational structure and evolve according to subscriber demand.

To add to the benefits, E6000 integrates Arris' edge QAM legacy video architecture with the CMTS DOCSIS IP network to offer cable TV operators a readymade integrated-IP platform. Arris' CCAP equipment will also allow Liwest to expand services capacity and lower costs.

In May 2013, Casa Systems was the first company to commercially introduce an integrated CCAP device. The CCAP market is highly competitive with presence of the likes of Cisco Systems Inc. CSCO, Harmonic Inc. and CommScope Holding Co. Inc.

Recently, research firm, Infonetics Research Inc. reported that Arris has become the market leader in the CCAP and CMTS devices segment, outpacing former leader Cisco. Also, several analysts have estimated that the CCAP market opportunity may reach around $1.7 billion by 2018.

Notably, Arris has stated that its E6000 CER currently support more than 5 million cable TV subscribers globally. Comcast Corp. CMCSA and Liberty Global plc. LBTYA are major E6000 CER customers. Furthermore, this latest deal with Liwest should boost Arris' position in the budding CCAP equipment market. Currently, Arris has a Zacks Rank #1 (Strong Buy).