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January 30, 2013

In China, Cable Operators are Tapping into the Benefits of Ethernet Over Coax Technology



By Ashok Bindra
TMCnet Contributor



Market research firm Infonetics (News - Alert) Research’s latest report, Ethernet over Coax (EoC) Equipment and Subscribers in China, shows that there is huge market potential for EoC technology in China. And cable operators are ready to exploit this technology to grab a piece of the growing broadband services market in China. In fact, using EoC technology, China’s cable operators are preparing to compete with major telecom players like China Telecom and China Unicom.

Commenting on this development in China, Infonetics Research’s (News - Alert) directing analyst for broadband access and pay TV Jeff Heynen said, “The number of TV subscribers in China is 200 million and growing fast, presenting a huge opportunity for cable TV operators there to become significant fixed broadband service providers, challenging China Telecom and China Unicom (News - Alert).” 

He added, “Given China’s unique multi-dwelling unit-dominated environment, cable operators are using Ethernet over Coax technology to quickly roll out broadband services to compete with fiber deployments.”

For that, the analyst believes that the cable companies are in the process of consolidating and retooling. However, given the organizational and operational challenges that lie ahead, the report suggest that the cable companies will spread EoC rollouts over a longer period of time as they sort out which technologies to use, which markets to target first, and how to best market services they have little to no experience providing.

As per the Infonetics forecasts, the market for EoC equipment in China, including master/headend units and modems, is expected to grow at a 33 percent compound annual growth rate (CAGR) from 2011 to 2016. Similarly, EoC modem shipments are forecasted to grow six fold by 2016, when they will make up around 70 percent of total EoC revenue. There are currently 3.7 million EoC subscribers in China, growing to nearly 24 million by 2016.

According to Infonetics, its annual EoC equipment and subscribers report provides market size, forecasts, analysis, and trends for EoC equipment and subscribers in China, including EoC master/headend units and modems (HomePlug AV/BPL, C-DOCSIS, HiNOC, MoCA, HomePNA/HCNA, and WiFi (News - Alert) over Coax (WOC) used by cable operators.

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Edited by Brooke Neuman
 
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