Arris Group Inc. (ARRS) continues to receive increasing market traction for its industry leading C4 CMTS (Cable Modem Termination System) products. Yesterday, Bresnan Communications LLC, a mid-sized cable MSO in the U.S., decided to deploy Arris’ next-generation DOCSIS 3.0 modular C4 CMTS platform in four North-western markets, Kalispell and Helena, Montana, Gillette and Casper, Wyoming.

Using this technology, Bresnan will initially offer high speed data, hosted VoIP and commercial services to its customers that can be upgraded to DOCSIS 3.0 network at later stage.

The most important factor regarding this contract is that Bresnan has chosen Arris’ CMTS products bypassing its former vendors Cisco System Inc. (CSCO) and Motorola Inc. (MOT). So far, Bresnan used to deploy Cisco’s modular-CMTS platform to integrate with Harmonic Inc.’s (HLIT) edge QAMs whereas Motorola remains its standalone DOCSIS modem supplier. Although the company already uses Arris’ embedded multimedia terminal adapters, it will implement Arris’ CMTS for the first time.

In the U.S., cable MSOs are aggressively rolling-out DOCSIS 3.0 network. Intense competition among cable operators, satellite carriers and telecom service providers for broadband market share has forced cable MSOs to choose cost effective, bandwidth enhancing technology for high-speed network. We expect Bresnan to follow suit in near future since its closest rival Qwest Communications International Inc. (Q) is planning to start implementing VDSL-2 based high-speed network.

Arris has established a solid foothold in the rapidly growing CMTS market. It remains a strong contender in the North American market but performs poorly worldwide compared to its peers. However, during the second quarter, the company became the world leader in the CMTS market. At present, it commands nearly 47% of the global CMTS market, having taken over the leadership position from Cisco (39%) and Motorola (10%).

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