DOCSIS 3.0 represents a revolutionary evolution + new Business Model

Docsis 3.0 Testing Skips a Beat

CableLabs and multiple vendors have confirmed that no products based on the new Docsis 3.0 specifications were submitted for testing in Wave 57. However, an undisclosed number of modems and cable modem termination systems (CMTSs) are already in for the next series of tests at the Louisville, Colo.-based R&D facility.

While that means it will be mid-May before we hear whether any cable modems have become the first to obtain the Docsis 3.0 stamp, it's unclear whether that will have much of an effect on cable operator deployment plans for the platform, which supports IPv6 addressing and uses channel-bonding techniques to produce shared data speeds of greater than 100 Mbit/s.

Among U.S. operators, Comcast Corp. (Nasdaq: CMCSA, CMCSK) has been the most open and aggressive, indicating that it expects to wire as much as 20 percent of its infrastructure for Docsis 3.0 by the end of 2008. (See Comcast Closes In on 100 Mbit/s.) Several other MSOs have dropped hints about tests and trials happening later on this year. (See RCN's 'Analog Crush' , Mediacom Adds $30M to '08 Capex, and Charter Hints at Docsis 3.0 .)

CableLabs spokesman Mike Schwartz noted that, while there are no 3.0-based products in Wave 57, "there's a good deal of [Docsis 3.0] product" already submitted for Wave 58.

Among suppliers, Motorola Inc. (NYSE: MOT - message board) confirmed last month it had put its flagship CMTS, the BSR 64000, in for "Bronze" qualification testing in Wave 58. (See Motorola CMTS Going for the Bronze .) By policy, CableLabs does not disclose which vendors submit products for certification and qualification testing.

According to the CableLabs certification schedule, Wave 58 got underway in late February, and results should be known by mid-May.

Wave 56, concluded late last year, marked the first official tests for Docsis 3.0. CableLabs has already awarded 3.0 Bronze or Silver 3.0 qualification to CMTSs from Arris Group Inc. (Nasdaq: ARRS - message board), Casa Systems Inc. , and Cisco Systems Inc. (Nasdaq: CSCO - message board). Modems from Arris, Motorola, and Scientific Atlanta -- all based on silicon from Texas Instruments Inc. (NYSE: TXN - message board) -- did not pass the first time through. (See Cisco, Arris & Casa Make the CableLabs Grade and TI Enters Docsis 3.0 Wave.)

Vendors, not CableLabs, made the decision to skip Wave 57 from a Docsis 3.0 standpoint. As for TI's role, the company said it passed on 57 so it could have some extra time to "shake, rattle, and roll" its modem software.

"I cannot comment for CableLabs, but I can say that TI made a conscious (and difficult) decision to forego the Wave and invest the additional three weeks or so to continue to exercise the software," said Peter Percosan, the executive director of broadband strategy for TI's Digital Connected Home Business unit, in an email to Cable Digital News. "As for the silicon, we continue to see no issues, which is very comforting."

TI also saved some money by holding off. The CableLabs fee for Docsis modem certification testing is $75,000. The fee rises to $175,000 for Docsis CMTS qualification testing.

So far, TI is the only chipmaker to develop and introduce cable modem silicon based on the full Docsis 3.0 specs. Broadcom Corp. (Nasdaq: BRCM - message board), another key silicon provider in the sector, has yet to make any formal announcements about its Docsis 3.0 product plans, though it has had some success in the interim with modem platforms that combine multiple Docsis 2.0 downstream channels. (See Broadcom Bonds With Docsis.)

"We've been very focused on [Docsis 3.0] and committed to it," says Jay Kirchoff, senior director of product marketing for Broadcom's cable TV business line. "We're working very hard to build the right product at the right cost point necessary for operators to compete in a marketplace that demands 3.0."

Kirchoff did not say when Broadcom will introduce a Docsis 3.0 modem chipset, but people familiar with the situation say they expect Broadcom to have something deployment-ready by the fourth quarter of 2008.

Cable Digital News will have much more about Broadcom's Docsis 3.0 plans as well as a broader market update in an upcoming story.

Jeff Baumgartner, Site Editor, Cable Digital News

DOCSIS 3.0 Builds Better Business Model

New specification is flexible, scalable and agile

As the deployment of DOCSIS 3.0 picks up steam, the dramatic increase in data transfer speeds of the new specification have garnered the headlines. However, it may end up being the little considered benefits of DOCSIS 3.0 that have the most important impact on a cable operator’s business for years to come.

Before DOCSIS 3.0, practically every new service offering decision had a large investment price tag attached to it (both time and money). The pleasant change for MSOs with DOCSIS 3.0 is the fact that the inherent flexibility and scalability of the specification, as well as the years of previous investment in physical plant, will allow operators to apply a much simpler set of business rules to new service offerings. Rather than consider yet another plant rebuild, which would certainly be frowned upon by Wall Street, MSOs now can focus only on whether or not the customer base will appreciate and pay for DOCSIS 3.0-based products and whether these new services represent the most effective deployment of their spectrum. This simplification of their business rules makes MSOs both large and small more agile in the marketplace, ready to quickly take advantage of new opportunities.

SPEEDS, FEEDS AND FLEXIBLE INFRASTRUCTURES
In today’s hyper-competitive broadband marketplace, competing for subscribers simply on the basis of DOCSIS 2.0 data rates has become a tenuous proposition for many cable operators. Now though, thanks to channel bonding and the other performance-enhancing features of DOCSIS 3.0, the MSOs are not only in the game against recently announced fiber-based product offerings, but the speed and overall performance of cable operators’ services can be head-and-shoulders above competitive offerings.

The core enabler of DOCSIS 3.0’s higher data rates is the concept of channel bonding. Unlike DOCSIS 2.0, which is an architecture based on single channels, the DOCSIS 3.0 specification is able to combine four or more DOCSIS 2.0 channels to create a single DOCSIS 3.0 channel with data rates that start in the range of 160 megabits per second (Mbps) downstream and 120 Mbps upstream. The specification defines a minimum DOCSIS 3.0 logical channel as four bonded DOCSIS 2.0 physical channels, but there is no upper limit in the spec to the number of channels that can be combined. In addition, the physical DOCSIS 2.0 channels that make up a bonded DOCSIS 3.0 channel need not be contiguous in the spectrum or have identical performance parameters, such as QAM modulation settings or latencies.

Presently, digitally connected homes can be served quite effectively by bonding four channels together, yielding an aggregate data rate of up to 160 Mbps. This is the “sweet spot” for this segment, but a greater number of channels could be bonded together to support other demands in the marketplace, such as the lucrative business services segment. For example, six to eight channels could be bonded together to satisfy demand for business service offerings in the range of 240 - 320 Mbps.

Figure 1: These two spectrum charts show a typical breakdown of a cable operator’s spectrum today (top) and what it will become in the future as DOCSIS 3.0 is deployed (bottom two charts). Gradually, as more video is transported as IP data, such as IPTV, the portion of an operator’s spectrum devoted to IP will expand.

The important thing to remember is that for the cable operators, DOCSIS 3.0 allows them to apply simple business rules to decide whether and how they will offer new services and not new technology or a plant rebuild. Because the maximum number of channels which can be bonded together is not defined, DOCSIS 3.0 channels with data rates as high or higher than 1 Gbps can be created. Data rates this high may be important for Internet access products, but they will be equally valuable when considering future IP-based products, such as IP television (IPTV).

CHANGING THE RULES
Certainly for competitive reasons, operators can’t ignore the faster data rates of DOCSIS 3.0. In fact, the requirement to offer much higher Internet access speeds will be the primary driver for initial deployments of the technology. But if the MSOs’ expectations for DOCSIS 3.0 ended here, they would be missing perhaps the most valuable aspect of the underlying technology. Because of the flexibility, scalability and agility inherent in the new specification, DOCSIS 3.0 can change the business model that operators follow and the rules that govern it.

Previously, the business model for every new service offering invariably came with a cost associated with additional capital investment in the operator’s infrastructure. Among other factors, the model would have to take into account just how quickly the investment in new network equipment or upgrades could be recovered from the revenue generated by the new service. The longer the payback on the capital investment, the less desirable would be the new service offering.

DOCSIS 3.0 turns this model on its head by minimizing new capital investment almost entirely from new service offering decisions. Of course, investments will be needed in new cable modem termination systems (CMTS) at the headend and cable modems in the home, but the network itself is left largely untouched. Because DOCSIS 3.0 has grown organically out of DOCSIS 2.0, and because of its flexibility, scalability, and spectrum agility, MSOs can continue to reap all of the benefits from the years of investment they have already made. Instead of the old model, MSOs can now apply new business rules to their decisions, rules that focus more on current spectrum utilization and do not include new capital investments.

IPTV offers a case-in-point. Perhaps the most common questions posed to cable executives today are: “When will you offer IPTV and how extensive will the network rebuild be?” The short answer is that once consumer demand is sufficient, the major investment will be the reclamation of currently allocated spectrum.

Initially, cable IPTV will likely be limited to video programming directly developed by the MSO. In this case, little to no additional CMTS capacity will be required. MSOs will be able to utilize their existing edgeQAM solutions to deliver directly to standard DOCSIS 3.0 modems, no specification changes required.

Once the operator makes the decision to extend the video offering beyond in-house programming – think YouTube-like Internet sources – additional CMTS capacity will be required.

Thanks to the flexibility of DOCSIS 3.0, it is likely that the initial launch of an IPTV product could be delivered over the same DOCSIS 3.0 footprint deployed to support the Internet access product. Flexibility is key to this equation. As IPTV demand increases, it is possible to add capacity as little as one channel at a time. DOCSIS 3.0 gives operators the ability to roll out new services like IPTV without the massive investment of a network rebuild. In fact, it is possible that no new video headend equipment (such as QAM modulators and others) would be needed to offer IPTV.

Of course, protecting operators’ investments in their networks is important, but protecting their investment in consumer premise equipment (CPE) like set-top boxes (STB), cable modems (CM) and other devices is just as important.

Figure 2: Today’s set-top boxes handle MPEG video and IP data separately, distributing each to the appropriate end-point devices. VoIP telephone calls are treated as data and distributed over the home’s existing telephone wiring.

Service continuity and investment protection are paramount and new services based on DOCSIS 3.0 help make this possible. Current DOCSIS 2.0-based services, Internet access and telephony services will not be affected during the transition to DOCSIS 3.0. Interoperability is guaranteed because DOCSIS 3.0 has grown out of DOCSIS 2.0.

In addition, current video services will continue to function as customers have come to expect. In the customer’s eyes, the addition of an IPTV product will be similar to the addition of HDTV. The only changes, and they will indeed be minor, may be adjustments to the operator’s video tiers resulting from reclaiming spectrum and new low-cost CPE devices. It is important to note that both legacy and new-generation STBs will work on the same network and in the same homes. No in-home changes are required.

COMING SOON TO HOMES NEAR YOU
The assumption in the marketplace is that there actually is consumer interest in the new features and services enabled by IPTV technology and that consumers place an enhanced value on such offerings. This being the case, it is fair to assume that a consumer will be willing to pay a fee for this service, much in the same way that they now pay extra for HDTV. The value proposition will likely include enhanced interactivity, near limitless choices of MSO-offered video programming, much of it niche-oriented, as well as video programming coming from sources that the MSO has no direct relationship with.

Because of the perceived value of IPTV among consumers, subscribers likely would be interested in a DOCSIS 3.0-enabled STB. The important point for operators is that no new investment in the network would be required to deploy a new generation of STBs – just the opposite. Such a scenario would protect the investment the operator has already made in the infrastructure, allowing that investment to generate revenue for a longer period of time. The only thing that goes to the bottom line faster than lowering a cost factor is to eliminate the cost factor entirely, and that’s precisely what DOCSIS 3.0 does for decisions on new service offerings.

The typical STB today accepts MPEG video and IP data, but it distributes them separately to distinct end-point devices in the home. MPEG video streams coming from headend video servers are transferred to television sets and other display devices in the home. IP data coming from the Internet is directed through the STB to PCs and other computing devices in the residence. Telephony is treated as data but it is also handled separately through the STB and distributed to telephones throughout the home in the old-fashioned way, via existing phone wiring.

The backward- and forward-facing nature of the DOCSIS 3.0 spec allows DOCSIS 3.0 technology to perform the functions of a transport gateway for both MPEG video and IP data. Unlike current STB technology, a DOCSIS 3.0 transport gateway could abstract the source of all incoming signals. This means that IP and MPEG transport video will be delivered to connected televisions in exactly the same fashion. To the consumer, it will be “just TV.”

An additional benefit of a transport gateway is that it is also possible to deliver the entire video offering (IP and MPEG transport) to any IP-enabled STB in the home. The transport gateway manages the conversion of both IP transport to MPEG and vice versa in one low-cost CPE. Of course, the new devices connected to the home network would need an IP interface. For those that do not have one, such as current television sets, a small and inexpensive IP interface module could either be embedded in the device or sit next to it.

With this sort of arrangement in homes, consumers can organically grow their video entertainment, computing, storage, voice and other capabilities as they wish. Without threatening the operator’s value proposition, subscribers also have the ability to access video and other data streams from sources that the cable operator does not yet have a direct business relationship with, but which are available on the Internet.

A DOCSIS 3.0 transport gateway, like the one shown in Figure 2, would suddenly give MSOs the ability to approach decisions involving new service offerings with simple business logic unencumbered by questions of network rebuild expenses. New IP-based services can be quickly launched with little or no new capital investment in the network. The questions concerning a new service come down to basic business rules, such as quantifying subscriber demand, revenue potential and operational costs.

Figure 3: A DOCSIS 3.0 transport gateway would be able to abstract the source of the incoming MPEG and IP signals and deliver both as IP data to connected devices. With this type of arrangement, consumers can organically grow their video entertainment, computing, storage, voice and other capabilities as they wish.

MAKING IT REAL
This vision of a transport gateway can be rationalized with the state-of-the-art in the cable industry and consumer electronics today. What emerges is a new type of STB that encapsulates all of the aspects of the home network shown in Figure 2 within a single enclosure.

This STB performs the functions of a transport gateway by protecting the investments operators have made while offering consumers an easy way of implementing all of the entertainment, voice communications and computing functionality they want. For example, instead of attaching a new storage device to a home network when the home’s music library has grown beyond its current disk space, the homeowner simply connects an additional storage module to the STB/transport gateway. The networking occurs inside the box.

As with an external IP home network, devices like computers would have to be IP-ready to connect to this new STB/transport gateway. For TV sets that are not IP-compatible, and most are not at this time, the small, inexpensive video handling module could either be installed between the transport gateway and the TV or it might be incorporated into the transport gateway itself, eliminating the need for an external module. Another alternative would be to embed it directly into the TV.

In fact, the transport gateway could be configured in a variety of ways to support various bundles of services and to protect the cable operator’s investment in network equipment. For example, a transport gateway may include QAM receivers for legacy video sources while the operator’s network transitions to IPTV.

REVOLUTIONARY EVOLUTION
DOCSIS 3.0 represents a revolutionary evolution for cable operators. It is revolutionary insofar as DOCSIS 3.0’s channel bonding and its blazingly fast data rates are catapulting the industry ahead of competitive technologies. But, at the same time, the transition to DOCSIS 3.0 is evolutionary. Operators can make this transition while they protect the capital equipment investments they’ve already made in their networks, lengthening the payback time on those investments and thereby increasing their rate of return. The evolution to DOCSIS 3.0 does not come with a capital equipment price tag associated with it.

As a result, operators will find themselves in a revolutionary position: they will be able to apply basic business rules of supply and demand to their service expansion decisions.

By Peter Percosan, Executive Director of Broadband Strategy, Digital Connected Home Business; and Etai Zaltsman, CTO,Broadband Technology Group, Texas Instruments

CedMagazine.com

The primary goals of Docsis 3.0 Strategies: From Product Development to Service Deployment will be to:

• Assess the cable industry's progress on Docsis 3.0 to date
• Explore the technical, operational, and competitive issues raised by the development of Docsis 3.0
• Lay out the course that the cable industry will follow over the rest of the year
• Estimate the cable industry's costs of deploying Docsis 3.0
• Offer constructive and practical advice to cable operators on the way forward

Among the key questions we will seek to answer:

• How ready is the cable industry's HFC plant for Docsis 3.0?
• How are cable operators planning to upgrade their networks for Docsis 3.0 rollouts?
• How much will it cost the cable industry to upgrade its plant for Docsis 3.0?
• What Docsis 3.0 cable modems, CMTSs, E-MTAs, set-top boxes, and other devices are equipment vendors testing and developing?
• When do MSOs plan to start testing and deploying Docsis 3.0 equipment and services?
• Which Docsis 3.0-enabled products and services are MSOs looking to introduce first?
• What are the capital and operating expenses of upgrading to Docsis 3.0 and launching the new products and services?
• How will cable operators price and promote Docsis 3.0 features and services?

ARRIS Receives DOCSIS® 3.0 Certification from CableLabs® for Touchstone TM702G 160 Mbps E-MTA

When Deployed with Certified DOCSIS 3.0 CMTS, Cable Operators Assured of End-to-End DOCSIS® 3.0 VoIP and High Speed Data Solution

5/9/2008 - Suwanee, GA: ARRIS Group, Inc. (Nasdaq: ARRS), today announced that its Touchstone® 702G Embedded Multimedia Terminal Adapter (E-MTA) has received DOCSIS 3.0 Certification in CableLabs’ Certification Wave 58. The 702G supports up to four bonded channels in both the upstream and downstream directions, allowing operators to offer up to 120 Mbps upstream and 160 Mbps downstream high speed data services. The 702G also supports two lines of PacketCable compliant carrier grade VoIP.

"This certification wave is another tremendous milestone for ARRIS and the cable industry, and the culmination of several years of effort on the part of cable operators and suppliers," said Bruce McClelland, President, ARRIS Broadband Communications Systems. "Cable operators around the world are demanding new innovative products that combine the many benefits enabled by DOCSIS 3.0 with the power of the voice and data bundle. The Touchstone 702G E-MTA, especially when combined with the C4 CMTS provides a platform for advanced applications for both residential and commercial services.” “We are delighted to be among the first recipients of DOCSIS 3.0 certification,” said ARRIS Chief Strategy Officer Tom Cloonan. “This honor marks the beginning of a new era for DOCSIS Cable Data services. Through the use of DOCSIS 3.0 Channel Bonding, MSOs will continue deploying high-capacity Internet service at lower cost to each of their subscribers without being constrained by the capacity of a single DOCSIS channel. As a result, many new applications will be enable that can capitalize on160 Mbps channels or higher.”

arrisi.com

Motorola Earns CableLabs^® Approval for DOCSIS^® 3.0 SURFboard^® Cable Modems and CMTS

Motorola extends leadership in optimizing cable networks for high bandwidth video and data services

HORSHAM, Pa. – 12 May 2008 – Motorola, Inc. (NYSE: MOT) today announced that it has achieved DOCSIS^® 3.0 certification for the Motorola SURFboard^® SB6120 and SBV6220 cable modems and DOCSIS 3.0 bronze qualification for the Motorola BSR 64000 cable modem termination system (CMTS)/edge router. The suite of customer premises equipment (CPE) and headend solution products successfully completed feature testing as part of the CableLabs^® Certification Wave 58, based on the DOCSIS 3.0 CableLabs Project specification.

DOCSIS 3.0-based technology, including downstream channel bonding and IPv6, has been integrated into Motorola’s SURFboard CPE and CMTS to help cable operators offer whole-home, high-bandwidth media services. The Motorola SURFboard SB6120 and SBV6220 modems support DOCSIS 3.0 data functionality and are backwards compatible with DOCSIS 1.0, 1.1, and 2.0 standards, allowing operators to deploy them today even ahead of an infrastructure upgrade to enable new advanced services.

In response to the explosion of consumer video applications, cable operators are looking to optimize their networks by delivering DOCSIS 3.0 technologies at the headend and in subscribers’ homes. Motorola CMTS and cable modems are being used in successful end-to-end channel bonding deployments worldwide. Motorola enabled the world’s first commercial channel bonding deployment through Starhub in Singapore, supports the first full-field deployment of DOCSIS 3.0 services for J:COM in Japan and delivers 100 Mbps high-speed data service to subscribers for Korea’s largest cable operators.

“Motorola has been a leader in DOCSIS technology from day one, working to provide innovative solutions that interoperate with equipment throughout our customers’ networks,” said Alan Lefkof, corporate vice president and general manager, Motorola Broadband Solutions Group. “In addition to our cable modem certification and CMTS qualification, we offer customers the full knowledge of field experience in DOCSIS 3.0 implementations, complimented with our expertise in carrier-grade network and device management. We are committed to integrating bandwidth-expanding technologies into all of our SURFboard cable and digital voice modems, gateways and CMTS platform as well as to developing technologies and revolutionary architectures beyond DOCSIS 3.0.”

“The DOCSIS 3.0 specification establishes ways for cable companies to tie multiple 6 MHz transmission channels together to deliver data at speeds in excess of 160 Mbps to consumers,” said CableLabs President and CEO, Dr. Richard R. Green. “DOCSIS 3.0 also incorporates support for the Internet Protocol version 6 (IPv6), allowing cable operators to expand their service offerings beyond current limits. We would like to thank Motorola for the support shown for our DOCSIS initiative."

Motorola’s SURFboard DOCSIS 3.0 CPE portfolio enables operators to:

• Protect their installed base of high-speed data customers
• Deliver new high-value / high-bandwidth, multimedia services
• Deliver competitive, high-capacity commercial services to their business customers

Designed for service assurance, the Motorola SURFboard DOCSIS 3.0 CPE are compatible with Motorola’s NBBS Device Management Platform and Motorola’s eCare for remote access customer component troubleshooting and configuration, eliminating unnecessary truck rolls.

Motorola’s commitment to invest in the BSR 64000 CMTS/edge router and to provide innovative solutions to cable operators in the battle over bandwidth is demonstrated by this recent accomplishment. The TX32 DOCSIS 3.0 Decoupled Downstream Module enables operators to:

• Quintuple downstream capacity of a BSR 64000 while maintaining full redundancy
• Reduce cost per downstream channel by up to 60%
• Simultaneously support of DOCSIS compliant 1.x, 2.0 and new DOCSIS 3.0 cable modems and feature sets

Motorola will be showcasing the DOCSIS 3.0 certified and qualified products at The Cable Show, May 18-20, 2008 at the New Orleans Convention Center, South Hall, Booth #1405.

Cisco Technologies Enable Service Providers to Empower Consumers' Connected Life With the Network as the Platform, Operators Can Deliver More Intelligence, More Services, More Experiences

SAN JOSE, Calif. - May 15, 2008 - Cisco today announced plans to showcase the continued momentum and execution of the Cisco® Internet Protocol Next-Generation Network (IP NGN) architecture at The Cable Show 2008. With the Cisco end-to-end network and progressive technologies, service providers can evolve into true experience providers, harnessing the power of the network to deliver next-generation video and data-based services and fulfill the consumer demand for more services on more screens.

The ability to deliver these personalized experiences anywhere, anytime, and to virtually any device creates a host of new Connected Life opportunities for accelerated service provider growth and enhanced customer satisfaction. At the show, Cisco will illustrate the ways in which the company enables service providers to protect and expand their business offerings while creating service growth opportunities. Highlights include:

• Solutions for the Connected Life
• Next-generation tru2way^TM set-tops, featuring DVRs with 320-GB hard drive option
• New switched tuning adapter, Model STA1520
• New modems: DPQ2160 data modem, DPC2202 voice and data modem, and the DPC3202 DOCSIS 3.0 voice and data modem
• tru2way applications
• New navigation options
• New IP-enabled services featuring the DRG2800 IP Services Gateway including:
• Ubiquitous content/personal content sharing within the Connected Home
• Unified communications
• Security, monitoring and automation
• IP video, data, voice and wireless solutions, including DOCSIS® 3.0 CMTS and voice/data modems
• Business services including Ethernet over DOCSIS and voice services for small and medium-sized businesses
• Solutions to extend and scale the network:
• Switched digital video
• Advanced compression/transcoding
• DOCSIS 3.0 downstream and upstream channel bonded solutions
• DOCSIS passive optical network for fiber-to-the-home greenfield deployments
• Content delivery system (CDS)
• Next-generation video-on-demand (VoD)
• Cross-platform video delivery
• Audience measurement
• Hyper-syndicated video
• Advanced Advertising via:
• Switched digital video
• VoD through Cisco Content Delivery System (CDS)
• Interactive advertising applications

Additional Programs

Cisco executives and industry experts will be among the featured speakers at the show. For a detailed list of speakers and topics, please click here.

Cisco launched today its Cable Show Podcast Series featuring video and audio podcasts, promoting thought leadership on industry hot topics including: Switched Digital Video, Advanced Advertising, Visual Networking, DOCSIS 3.0 and Video 2.0: Getting to 3 screens.

**To arrange an interview or booth visit with Cisco executives at The Cable Show 2008, please contact Sara Stutzenstein at stutzes@cisco.com.

The Cable Show
Ernest N. Morial Convention Center
New Orleans, La.
May 18-20, 2008
Booth 2811

cisco.com

Tru2way™ Brand to Succeed 'OpenCable™ Platform' in Consumer and Retail Settings

The U.S. cable industry has adopted the “tru2way™” brand to succeed use of the term “OpenCable Platform” as it applies to the marketing and branding of the interactive video platform for consumers and in retail markets.

CableLabs®, the industry's research and development arm, will license the brand to cable companies, cable programmers, and consumer electronics manufacturers that will deliver, create or build devices to access tru2way applications and services. Most cable companies plan to advertise, use, and support the tru2way technology. Use of the mark on devices capable of receiving such services is strictly voluntary for manufacturers.

Tru2way technology is built into televisions, set-top boxes, and other devices enabling cable companies and other interactive television service and application developers to “write” interactive applications such as games once and see them run successfully on any cable television system that supports the specification.

The technology has been licensed by several dozen application authoring entities and equipment manufacturers, including Digeo, LG Electronics, Panasonic Corporation of America, and Samsung Electronics Co., and by chip makers Broadcom and Intel.

The tru2way technology enables consumers to access two-way digital cable programming without the need for a cable operator-supplied set-top box and is capable of supporting all cable services now delivered to devices currently leased to consumers as well as future services written to the tru2way technology. Major cable operators have committed to deploy support for the tru2way platform in service areas covering more than 90 million U.S. homes by the end of 2008.

The tru2way brand was developed by the global brand consulting firm Siegel + Gale, in consultation with the Cable & Telecommunications Association for Marketing (CTAM), the National Cable & Telecommunications Association (NCTA), and marketing and technology representatives of a variety of major cable providers.

Additional information may be found at www.tru2way.com.

cablelabs.com/news

Broadband Gear Report Products for January 11, 2008

Cisco at CES: New Set-Top, Modem, IP Services Gateway

Cisco used the Consumer Electronics Show 2008 in Las Vegas to roll out the latest additions to its 8500HDC DVR set-top series. The three new models in the 8500HDC DVR Series offer a range of capabilities such as the ability to support features such as whole-home content, richer navigation, Internet and premium content services, device docking and storage, social networking apps and instant messaging across multiple devices.

The new members of the 8500HDC series offer 800 mips (million instructions per second) of application processing power; dual 400 MHz processors for MPEG-4 advanced video compression decoding; 1 GHz tuning; and optional OpenCable features. Additionally, the 8552HDC DVR model set-top offers Multimedia over Coax Alliance (MoCA) whole-home connection. MoCA adds Ethernet-over-coax support, enabling the transport of digital video and entertainment through existing coaxial cable in the home to other consumer home network devices.

Cisco also announced it is taking its ultra-high-speed channel-bonding solution -- designed to facilitate broadband services in excess of 100 Mbps -- to the next level with a new channel-bonded cable modem, the Model DPC3000. The modem is designed to meet DOCSIS 3.0 specifications, which feature support of four bonded downstream channels and four bonded upstream channels. It is designed to be backward-compatible for use as a single-channel cable modem with DOCSIS and Euro-DOCSIS 1.1/1.0 and 2.0 networks.

Additionally, the company unveiled its IP Services Gateway (Model DRG2800), which is designed to expand consumers' entertainment and personal content choices and bring network-based and home-based applications together in one device. With this product, consumers can use their set-top and large-screen, flat-panel TVs to watch videos, listen to downloaded music in surround sound and view photos accessed from their PC.

The Cisco IP Services Gateway provides consumers with a single device that connects to the in-home PC via Ethernet and to a digital set-top using coax. Then, to multiple devices throughout the home, this all-in-one product is capable of managing and delivering a variety of services including high-speed Internet, wired and wireless home networking, file and data storage (including video and music) from its 160-gigabyte hard drive, and voice/telephone service.

Moto Highlights MPEG-4 Boxes, Digital Voice Modem

Motorola unveiled a new generation of MPEG-4 advanced video compression set-tops, the DCX series, which support the increasing deployment of high-bandwidth apps with HD decode capabilities and MPEG-4 advanced video compression (AVC) support. The all-digital, MPEG-4 AVC (H.264) series includes: DCX3400, a dual-tuner, high-definition DVR host set-top; DCX3200, a single-tuner, high-definition host set-top; and DCX100, a single-tuner, standard-definition (HD in /SD out) host set-top.

The boxes include 1 GHz tuners that enable ops to expand the number of available channels to deliver increased content for consumers. Other features include DOCSIS downstream channel bonding and fast IP connection to handle future services, support for the full range of interactive applications including SDV and VOD and choice of software solutions based on legacy software and OCAP. The series supports MoCA, HTML, DOCSIS, MCard, OCAP and Dolby Digital Plus

Motorola also announced the SURFboard SBV5422 digital voice modem and integrated DECT cordless phone system. The product enables IP telephony, high-speed data and new cordless phone technology that can be easily installed by consumers.

Real-time information including weather forecasts, news briefs and sports scores can be viewed on the screen of the cordless phone handset. In addition, the Motorola SBV5422 IP-based handsets, together with the Casabi network, enable unique customer experiences including e-mail access from anywhere in the home with no PC required, and sending and receiving SMS messages from the home phone.

Calix Cuts Through the RFOG

Calix announced the availability of the first gigabit passive optical network (GPON) optical network terminal (ONT) that utilizes standards-based radio frequency over glass (RFOG) technology for two-way communication with RF-enabled consumer devices. The Calix 725 ONT reportedly supports all of the current and emerging cable RF return path standards, including SCTE Standards 55-1 and 55-2, and CableLabs DOCSIS and DOCSIS Set-Top Gateway. According to the company, ops can seamlessly deploy the 725 ONT and ensure interoperability with their video headends and conditional access systems.

At the subscriber premises, by incorporating RFOG technology into the 725 ONT, Calix says it has eliminated any additional packaging or powering requirements. This approach simplifies craft training and installation time. At the headend, ops can use the same return path receivers commonly used in the cable industry, such as those from Motorola and Scientific-Atlanta.

DVR-a-Go-Go: Panasonic and Comcast Debut AnyPlay

Panasonic and Comcast unveiled a portable DVR/DVD player powered by tru2way technology at the 2008 Consumer Electronics Show. The co-branded AnyPlay portable DVR (P-DVR), which is set for availability in 2009, will let Comcast subs record programming at home and take it with them wherever they go.

The AnyPlay P-DVR Model TZ-LC100 incorporates digital video recording functionality into a Panasonic portable DVD player platform. The product features 60 GB of digital video recording capacity, an 8.5-inch folding LCD display screen, and integrated stereo speakers. Dual audio headphone jacks are included. When placed onto a companion docking station that functions as a standard DVR set-top, the AnyPlay P-DVR lets viewers watch and record programs from their TV sets. However, unlike a traditional set-top, it can be taken out of its docking station, so recorded programs can be watched anywhere in or out of the home on the AnyPlay P-DVR. It also can play back DVDs and audio CDs.

Lindsay, Omnitron Team for NEBS/MEF-Compliant Media Converter Solutions

Lindsay Broadband and Omnitron Systems Technology announced a strategic development and sales partnership wherein Lindsay will incorporate Omnitron Systems' iConverter network interface devices and media converters into its FLEeX LM carrier class, integrated, last-mile architectural product family for commercial services delivery. Lindsay Broadband will now offer a complete family of wired and wireless, MEF 9 and 14 compliant broadband delivery platforms that all terminate on a common, NEBS level 3 certified, Omnitron Systems media converter platform.

The new solution provides cable operators the ability to offer T1/T3/OC3/OC12 TDM services as well as fully managed, carrier-class Ethernet and wireless services to business customers. When combined with the Lindsay Broadband FLEeX LM passive CWDM and wireless product family, cable ops can target enterprises with fully managed, carrier class broadband services offerings.

Privacy Please: RGB Networks Offers Privacy Mode Encryption Technology

RGB Networks announced that it offers Privacy Mode Encryption licensing and technology for VOD applications, enabling cable ops to easily encrypt their VOD programs to ensure they can only be viewed by authorized subs. Accomplishing this on the scale necessary for major VOD deployments requires the simultaneous bulk encryption of hundreds of VOD programs.

RGB will enable this capability on two of its key products - the Universal Scalable Modulator (USM) and Dynamic Bandwidth Manager (DBM) - and will apply privacy mode encryption to the VOD programs as they are processed. The company's USM is a high-density universal QAM modulator, capable of processing more programs than any competitive offerings. The RGB DBM is a VOD bandwidth optimization platform that reduces VOD bandwidth requirements, enabling cable operators to deliver more standard and high definition VOD programs without the need for increased bandwidth.

Ciena Announces Ethernet Aggregation and Switching on CN 4200

Ciena unveiled the new G10 and G10X Ethernet Service Modules that deliver Layer 2 Ethernet aggregation, switching and transport capabilities as simple plug-and-play upgrades to the company's CN 4200 FlexSelect Advanced Services Platform family. The new modules are said to simplify IP/Ethernet service architectures and optimize the cost and efficiency of network resources by reducing the number of router ports, metro WDM client ports and wavelengths and standalone Ethernet switches-often resulting in CAPEX savings of more than 50 %.

Targeted applications for the CN 4200 with new Layer 2 Ethernet aggregation and switching capabilities include Metro Ethernet Forum-based Carrier Ethernet services, broadband aggregation for triple-play and IPTV services and 3G wireless backhaul. Key to the enablement of these applications is the ability of the G10 and G10X modules to ensure QoS and to support connection-oriented Ethernet for deterministic, reliable and manageable IP/Ethernet services and transport. For connection-oriented Ethernet, the G10 modules initially support provisioned VLAN cross-connects and will support Provider Backbone Bridging-Traffic Engineering (PBB-TE) as it gets closer to standardization by the IEEE.

Sling Media to Market SlingModem as OEM Device to MSOs

Sling Media announced the development and CableLabs certification of the first cable modem that fully integrates the place-shifting capabilities pioneered in the original Slingbox. With the SlingModem, customers reportedly can easily watch and control their TV programming on any Internet-connected computing device just as they would in front of the living room TV. "We are working with MSOs both in the U.S. and worldwide, and we expect to deliver the SlingModem through OEM customers in 2008," Blake Krikorian, co-founder and CEO of Sling Media, says.

The SlingModem provides the cable sub with both a broadband connection as well as placeshifting functionality. Connecting a SlingModem is said to be as simple as a traditional modem, with the only required input being the coax. Upon set up, users will instantly have access to their analog cable channels on a PC, Mac or compatible smartphone. In addition, customers with a digital cable set-top can connect SlingModem to the box to access live or recorded TV programming, premium content and VOD.

Gefen, Pulse~LINK Roll Out HDMI Over Coax Product for HD Connectivity

Gefen and Pulse~LINK introduced a product at CES that incorporates Pulse~LINK's CWave UWB HDMI-Over-Coax technology that allows consumers to extend the reach of HDMI from room to room over their existing in-home coax cabling.

The Gefen HDMI Over Coax Extender provides an infrared back channel that enables consumers to use the same remote that controls their set-top box, DVR, Blu-ray or HD DVD player, in all rooms throughout the connected home. The no-new-wires solution offers Gigabit data rates and is capable of simultaneous delivery of high quality, visually lossless video along with multichannel digital audio.

• Accedian Networks, which offers network assurance solutions for Ethernet service providers, was selected by Ottawa Centre for Research and Innovation (OCRI) as one of Canada's Top 10 technology companies. An independent expert panel of Canadian and US venture capitalists picked winners.
• APA Enterprises combined its business operations with its wholly-owned subsidiary, APA Cables & Networks, and subsequently changed its name to Clearfield Inc. The company, which provides fiber connectivity systems for independent telephone, cable and municipal networks, has its Web site at www.ClearfieldConnection.com.
• BigBand Networks was awarded the telecommunications sector-specific TL 9000 certification. TL 9000 defines a strict set of standards for the design, development, production, installation, and maintenance of telecommunications products, software, hardware or services.
• JDSU acquired the fiber division of Westover Scientific, a provider of fiber optic inspection and cleaning solutions. The company will be integrated with JDSU's Communications Test and Measurement (CommTest) business.
• Pace Micro Technology entered into a conditional agreement to acquire the set-top and connectivity solutions business of Royal Philips Electronics. The Philips STB and CS Business employs approximately 335 staff predominantly based in France and is a designer and supplier of a range of digital TV products including satellite, cable, terrestrial and IPTV set-top box products.

broadbandgear.net

Comcast + Panasonic = tru2way ?

Comcast: Cable to Standardize Technology

Facing pressure from regulators, the cable TV industry plans to make good on a promise to standardize its technology and open the door to televisions and other gadgets that don't need cable boxes to receive video-on-demand programs and other interactive services.

An industry initiative, to be renamed "tru2way" after a decade in the works, is expected to allow electronics manufacturers to make TVs and other gear that will work regardless of cable provider. By making devices compatible, the standard also could encourage the development of new services and features that rely on two-way communication over the cable network.

Comcast Corp., the nation's largest cable provider, will roll out the platform in all its markets by the end of 2008, Chief Executive Brian Roberts said in an interview with The Associated Press ahead of a speech Tuesday at the International Consumer Electronics Show.

Time Warner Cable Inc. is even closer to completion, Comcast executives said. A spokesman for No. 3 provider Cox Communications Inc. said the company will have "widespread deployment" this year.

"Our business model has changed completely, from a closed, proprietary model to an open architecture that will work across cable companies — not just across Comcast," Roberts said. "That was a Herculean job to accomplish."

Craig Moffett, senior analyst at Sanford Bernstein, said the industry is sending a hands-off signal to the Federal Communications Commission. Last summer, FCC officials said they would soon take on the issue of two-way compatibility between consumer electronics and cable systems.

"They don't have a lot of friends at the FCC right now. The cable industry has every reason to be nervous," Moffett said. "I suspect a lot of this is trying to beat the FCC to the punch."

CableLabs, the cable industry's research and development arm, which Roberts leads, was to announce Monday that its OpenCable platform, which began development in 1997, will now be branded as "tru2way."

Cable providers and device manufacturers have long disagreed over the technical specifications for two-way communication among their devices. There are TVs and set-top boxes in the market that can receive digital programming, but they can't talk back to the network, which would allow advanced interactive services. That leaves consumers with having to rent a box from the cable company.

And even with the new standards some discord remains.

Though the cable industry has inked separate deals with electronics companies, including Panasonic, Samsung and LG, consumer electronics giant Sony isn't on board.

The FCC — where Chairman Kevin Martin supports a more open and competitive environment — is also considering a different standard put forward by a group of consumer electronics companies.

CableLabs said it has inked licensing agreements with Intel Corp. and Broadcom Corp. to develop chips to run the software. And Microsoft Corp. is expected to integrate the standard into future versions of its Windows operating system for personal computers.

Comcast foresees "tru2way" branding on TVs, set-top boxes, PCs and other devices to signal their compatibility with cable systems.

On Monday, Panasonic and Comcast plan to unveil a slew of products that will be compatible with "tru2way," including a plasma high-definition television, high-definition digital video recorders and a portable DVR.

"You'll see a number of new 'tru2way' devices, and this is just the beginning," Roberts said. "This is Day One."

The Panasonic Viera Plasma HDTV with "tru2way" will go on sale this year. Panasonic's portable DVD player and recorder, called "AnyPlay," lifts off a docking station and allows consumers to watch the programs they've recorded anywhere they like, on its 8.5-inch LCD screen. It is to go on sale in early 2009.

Other products are expected to reach retail stores as early as the end of 2008. The timeframe gives cable leverage over the competing standard proposed by consumer electronics makers, whose devices might not make it to retail until 2009 at the earliest.

Moffett said cable operators are telling the FCC that the industry can work with consumer electronics makers on two-way cable-compatible products.

"That could tip the scales in their favor," Moffett said.

Cable's consumer electronics makeover

Historically, cable has been left out of the gadget circus. But at this year's CES, Comcast's Brian Roberts is trying to boost the business's presence.

NEW YORK (Fortune) -- Comcast CEO Brian Roberts says he remembers walking around the Consumer Electronics Show five years ago with Time Warner Cable CEO Glenn Britt. He recalls seeing a big presence from his rivals in the satellite-television business. His own industry, by contrast, was nowhere to be found.

"So we met with the board of [industry research arm] CableLabs and decided to go to Japan and Korea to visit the CEOs of the major [consumer electronics] companies," Roberts told me in a conversation over the weekend. "And we asked them, 'What do we need to do to work better with your industry'?"

This week, at CES 2008 in Las Vegas, Roberts is unveiling some of the fruits of those discussions - and, in so doing, he hopes to generate some much-needed positive buzz for the cable industry. In a joint announcement Monday with electronics maker Panasonic (MC), Roberts presented a cable-ready plasma television set (i.e., no set-top box) and a portable Digital Video Recorder that lets consumers take their stored cable programs with them on the go.

Both products are powered by technology called "tru2way," which cable companies are adopting; Roberts describes it as an open platform that will allow developers and electronics companies to write applications that can be widely deployed across the entire footprint of cable companies supporting tru2way. The biggest consumer benefit of tru2way is that it can be built into television sets, eliminating the need for discreet set-top boxes - an aesthetic benefit to consumers trying to avoid clutter as they upgrade to sleek flat-panel sets.

Roberts, who also will give his first-ever CES keynote address on Tuesday (and will reveal a few more new products at that time), says of his CES appearance: "I think it is a way for us to tell our employees and our customers how excited we are about what is happening at Comcast."

He says his speech Tuesday won't be aimed at investors, but it wouldn't hurt to get Wall Street excited about the sector. Cable stocks performed miserably in 2007: Comcast (CMCSA) shares, trading at about $17, were down about 40% last year. Shares of Time Warner Cable (TWC), which is controlled by FORTUNE and CNN/Money parent Time Warner (TWX, Fortune 500), were also down 40%. Investors are concerned about fresh competition from telephone companies such as Verizon (VZ, Fortune 500) and AT&T (T, Fortune 500) now offering video services, and stepped-up pressure from DirecTV and Echostar, which boast broad high-definition lineups.

And indeed, the satellite industry has done a good job of partnering with the consumer electronics industry. In recent years, DirecTV, for example, has worked with some electronics makers and retailers to encourage consumers to switch to satellite from cable when buying a new plasma television. TV makers had found some consumers returning their sets complaining of poor picture quality; the buyers didn't realize they needed a new cable box in order to get channels in high-definition.

The cable industry's new open platform should solve some of those problems. Now a cable operator can remotely upgrade a customer's channel line-up, say, or deliver new applications, without the customer needing to acquire a new in-home device.

Roberts says he hopes 2008 marks the start of an important partnership with the likes of Panasonic, LG, Samsung and others. "Our presence at CES is a chance to tell CE companies and software applications developers that we are here, we are open and we need your innovation to help us win," he says.

Roberts, 48, talks a lot about winning these days. The competitive playing field, which once seemed stacked in cable's favor (it was first with broadband Internet access and first with the "triple play" of voice, video and data), now looks remarkably level. To beat back phone and satellite insurgents, the historically insular cable industry is going to need help. "We have to innovate, have an open architecture and interoperate between cable companies, and our customer service has got to continue to reach new levels of excellence," Roberts says. "We also have to have the most content, which we clearly do. Put together, we have a winning strategy."

Comcast customers, employees, and certainly its investors, hope he's right.
Fortune Magazine

Cisco, Arris & Casa Make the CableLabs Grade

CableLabs has awarded Docsis 3.0 qualification to three cable modem termination system (CMTS) vendors -- Arris Group Inc. (Nasdaq: ARRS - message board), Casa Systems Inc. , and Cisco Systems Inc. (Nasdaq: CSCO - message board) -- following the conclusion of Certification Wave 56, the first to conduct official tests on a spec that promises shared speeds in excess of 100 Mbit/s. (See CableLabs Stamps CMTSs .)

While CMTS 3.0 approvals mark a significant milestone in the history of cable's Docsis effort, CableLabs officials confirmed Wednesday morning that it did not award 3.0 certifications to any modems submitted in the recently concluded test wave.

CableLabs has not disclosed any of the participants in Wave 56, but, according to data culled by Cable Digital News, at least three cable modem makers -- Arris, Motorola Inc. (NYSE: MOT - message board), and Scientific Atlanta , the Cisco subsidiary -- submitted modems for 3.0 testing. Those models were based on chipsets from Texas Instruments Inc. (NYSE: TXN - message board), which has taken a lead role in developing modem-side silicon for the full Docsis 3.0 platform. (See TI Chips In and TI Enters Docsis 3.0 Wave.)

CableLabs president and CEO Dr. Richard Green said in a prepared statement that the R&D house was "very encouraged by the progress made toward certification of cable modems, particularly with the performance of the hardware."

"We are anticipating much greater success in the subsequent wave," CableLabs chief technology officer Ralph Brown tells Cable Digital News. He adds that CableLabs also expects to soon see embedded multimedia terminal adapters (eMTAs) based on Docsis 3.0. In addition to traditional Internet services, those devices also support IP telephony applications.

Cable modem vendors will soon get another opportunity to break the 3.0 barrier. According to the CableLabs 2008 certification schedule, Wave 57 gets underway in early January, with results expected on or around March 11, 2008.

All three CMTSs believed to be in Wave 56 for Docsis 3.0 testing made it through with passing grades, based on a tiered qualification testing system CableLabs introduced in April that aims to speed up the 3.0 program. (See CableLabs Accelerates Docsis 3.0 Testing and Go for the Bronze! .)

While "Full" qualification covers the Docsis 3.0 gamut, "Bronze" is said to include support for downstream channel bonding and the IPv6 addressing scheme. "Silver" adds upstream channel bonding and the Advanced Encryption System (AES) to the mix. CableLabs is expected to phase out the tiered system in early 2009.

Casa Systems, a startup based in Andover, Mass. (see the Light Reading profile), submitted its C2200 CMTS for Full qualification, but came away with Silver. CableLabs awarded Bronze qualification to the Arris C4 and the Cisco uBR 10012 -- considered the CMTS flagships for those vendors.

Based on a minimum configuration that calls for the bonding of four channels in both directions, Docsis 3.0 is designed to produced shared speeds of at least 160 Mbit/s downstream and 120 Mbit/s upstream. The Linksys unit of Cisco, by way of example, has talked up the WCM300, a model that bonds up to eight downstream channels –- enough to push about 240 Mbit/s.

Although Wave 56 concluded without any modems making the grade, that may not have much of an affect on cable operator deployments next year, expected to target markets affected by Verizon Communications Inc. (NYSE: VZ - message board)'s FiOS platform and other services delivered via fiber-to-the-home systems. Those early 3.0 tests and deployments will likely enlist only downstream channel bonding. Some MSOs outside the U.S., including StarHub Pte. Ltd. of Singapore and Jupiter Telecommunications Co. Ltd. (J:COM) of Japan, are already using pre-Docsis 3.0 systems or some proprietary technologies to dilate the downstream. (See StarHub Offers 100-Mbit/s and Japanese MSO Moves 160 Mbit/s.)

Comcast Corp. (Nasdaq: CMCSA, CMCSK), the nation's largest MSO, has already placed some orders for Docsis 3.0 equipment. Last month, Comcast CTO Tony Werner said the operator plans to have Docsis infrastructure in place in 20 percent of its footprint by the end of 2008. The operator has yet to disclose markets, but possible targets include Reston, Va., and parts of Massachusetts where the MSO is crossing swords with FiOS. (See Comcast Closes In on 100 Mbit/s.)

The "rapid certification effort will enable companies to begin to develop products that will support the rapid deployment of Docsis 3.0 services in 2008," Comcast chairman and CEO and CableLabs chairman Brian Roberts said in a statement issued Wednesday.

Mediacom Communications Corp. , a mid-sized MSO that tangles primarily with Qwest Communications International Inc. (NYSE: Q - message board), has said it will likely take a "back seat" on Docsis 3.0 while larger operators vet the technology. (See Mediacom Takes 'Back Seat' on Docsis 3.0 .)

Wave 56 marks the second time in which CableLabs approved products for a new spec the first time through. The last time that happened was in late 2002, when CableLabs polished off Cert Wave 24, the first to test against Docsis 2.0. (See No Docsis 3.0 Breakthroughs… Yet.)

Jeff Baumgartner, Site Editor, Cable Digital News

First DOCSIS 3.0 Modems Could Be $100

Initial Wave of Products to Be More Expensive Than Anticipated

The first wave of cable’s next-generation cable modems, which promise downloads up to 160 megabits per second, are currently in the middle of certification testing by CableLabs and should be ready for early deployments in 2008.

But as the ship dates near for the initial modems that use CableLabs’ Data Over Cable Service Interface Specification 3.0, it’s becoming clearer that DOCSIS 3.0 modems will be more expensive than perhaps previously anticipated.

John Sweeney, Scientific Atlanta director of product strategy and management, estimated that the street price of a 3.0 modem will be around $100, adding that quantity has a large effect on the per-unit price. Current DOCSIS 2.0 modems cost an average of $65 to $70, according to research firm In-Stat.

“It’s not the $10-to-$20 delta [between 2.0 and 3.0] the cable operators were encouraging the industry to hit,” Sweeney said.

DOCSIS 3.0 delivers higher bandwidth by virtually combining several 6-Megahertz channels in a digital cable system, to act as if they were one. The specification requires cable modems to support four downstream and four upstream channels, theoretically capable of sending data at around 160 Mbps down and 120 Mbps up.

One of the reasons DOCSIS 3.0 modems cost more is that to be able to bond four channels up and down, they require much more memory than their 2.0 cousins. For example, while a 2.0 modem may have needed 8 megabytes of memory, a 3.0 unit will require upward of 32 MB.

As Sweeney explained: “You have to park the packets in memory and then reassemble them. In the data rates we’re working with -- 160 megabits per second -- that’s a lot of bits you have to reassemble.”

Over time, vendors will optimize modems so that future models should have lower memory requirements, said Peter Percosan, executive director of broadband strategy for Texas Instruments’ residential gateway business. TI is supplying DOCSIS 3.0 chips to Arris, Scientific Atlanta and Motorola, among other vendors.

“The initial focus [for DOCSIS 3.0] was functionality and stability,” he said. “There’s a lot of opportunity to shrink the memory footprint.”

Mike Paxton, an analyst with research firm In-Stat, said cable modem suppliers are anticipating that volume shipments of 3.0 units will begin in September or October 2008. (In-Stat is owned by Reed Business, publisher of Multichannel News.)

That’s about a quarter later than many previously expected, but he said such slippage is “common enough when you’re talking about a new technology like this,” he said.

“I don’t see anything over all with red flags in terms of rolling out the products,” Paxton said. “But maybe there was a little bit too much enthusiasm about how quickly this would happen.”

CableLabs was scheduled to complete certification testing of the first wave of DOCSIS 3.0 this week. Vendors that have submitted cable modem and CMTS products for the tests include Arris, Cisco, Motorola and Scientific Atlanta.

After testing is completed, a certification board comprised of cable operator executives reviews the results and issues recommendations on whether individual cable modems or CMTSs comply with the specification. The certification board, which was scheduled to meet Dec. 4 to review results of the DOCSIS 3.0 testing, may request that a product undergo additional retesting after a vendor addresses any issues.

That means CableLabs-certified DOCSIS 3.0 products may be ready as early as January, or it could be a few months longer than that.

“DOCSIS specifications are complicated, and sometimes it takes more than once to get through certification ... Early specs can be read differently,” said Tom Cloonan, chief technology officer for Arris’s broadband division. “We’re hopeful [about receiving certification], but we’re realistic.”

Sweeney said Scientific Atlanta is in “a ramp-up mode” to produce its first DOCSIS 3.0 modems, with the initial models expected to roll off the production line in the early first quarter of 2008.

“The big issue will be getting orders in place to justify production,” he said. The question will be how long it will take MSOs to evaluate the new products in their labs, a process he said could take up a good part of the first quarter.

Rouzbeh Yassini, an early cable-modem pioneer who is CEO of venture-capital firm YAS Broadband Ventures, believes operators won’t begin wide commercial deployments of DOCSIS 3.0 until mid-2009 at the earliest.

Historically, he said, for a new cable technology, it has taken about 18 months to go from factory production to field implementation. “If you can do it more quickly, more power to you,” he said.

“Cable operators have to keep making money and they’re going to continue deploying what works,” Yassini added, meaning current-generation DOCSIS 2.0 cable modems.

multichannel

additional info - what inside?

Texas Instruments Delivers on the Promise of DOCSIS 3.0 with its Puma 5 Family

Texas Instruments (TI) Incorporated [NYSE: TXN] today announced that the company is delivering on its promise to introduce the Puma 5 family of DOCSIS 3.0-based (Data Over Cable Service Interface Specification) cable modem chipsets to support CableLabs DOCSIS 3.0 testing in Certification Wave 56. This milestone will help drive the next wave of cable modem innovation and services.

Optimized for triple play and next generation IP services, TI's Puma 5 family has been developed to support DOCSIS 3.0 enhanced performance and features. New DOCSIS 3.0 features, such as channel bonding, enable ultra high downstream bandwidth rates of at least 160 Mbps in the residential data and voice services configuration and 320 Mbps in video and business services configuration. In addition TI's Puma 5 also supports greater quality of service with IPv6 and security with Advanced Encryption Standard (AES).

The Puma 5 architecture includes an advanced multimedia processor and routing accelerator along with a high-performance DSP-based voice sub-system and a rich set of local area network (LAN) interfaces. The routing accelerator provides line rate bridging and routing capabilities and enables quality of service guarantees for voice traffic even in the presence of very high data packet throughput. The flexible architecture supports 4 upstream and 4 downstream channels (4x4) and is extendable to 8 downstream channels and 4 upstream channels (8x4) to support next generation IP services. In addition, Puma 5 contains a high speed sampling engine that enables a single tuner to be used for 4 channel operation enabling a very cost effective implementation.

"TI is excited to deliver Puma 5 to our customers and to support their efforts in the first DOCSIS 3.0 certification wave," said Ran Senderovitz, Cable Business Manager with TI. "The differentiated products they are creating will help drive next generation Cable services and we are happy be to supporting this endeavor."

The latest Puma family leverages TI's field proven Cable technology, and includes the TNETC4800, TNETC4810 and TNETC4830. The TNETC4800 supports full functionality EMTA applications and includes a battery back up subsystem. The TNETC4810 is optimized for EMTA applications without battery back up. The TNET4830 is optimized for data cable modem applications. The EMTA solutions incorporate a dedicated DSP to enable exceptional voice capabilities and deliver on TI's vision of Fixed Mobile Convergence (FMC) throughout the home with support for up to four channels of wireline or wireless voice. Its high-performance programmable voice subsystem allows manufacturers to leverage TI's extensive voice codec library and Telogy Software^™ for VoIP.

TI's Puma 5 family of Cable modem chipsets is available today

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