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Cable Technology Feature Article

October 08, 2008

Vecima Inks Multimillion Dollar Deal with U.S.-Based MSO

By Nathesh, TMCnet Contributor

Vecima (News - Alert) Networks Inc reportedly has signed a multi-year engineering, supply and maintenance contract with a U.S.-based cable multiple system operator for a new cable network product.
The engineering portion of the contract is valued at $2 million to $3 million dollars alone, and should lead to substantial additional supply and maintenance revenue, Vecima officials say.
The company designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Officials at Vecima claim that their hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks.
The above-mentioned Cable MSO is transforming into an all-digital network. It’s expected to maximize the value of its existing infrastructure so it can provide both high-quality digital services and basic analog cable TV services.
“According industry studies, the global market for bandwidth reclamation products is expected to reach $1.5 billion in the next five years as the industry-wide transition to all digital networks, focused on delivering higher video quality and a broader range of HDTV services, is completed,” said Vecima Chief Executive and Chairman Surinder Kumar. “This contract is part of our broader growth strategy, as we continue to exploit opportunities to productize innovative technology that meets the needs of our customers and we believe we are well positioned to capture a meaningful piece of this market.”
Original equipment manufacturers such as Vecima and their clients, Cable MSOs, are now dealing with the rising demand of bandwidth across their hybrid fiber coaxial networks. This demand has risen exponentially, mainly due to video streaming, social networking and file sharing applications, and increased personalized television offering techniques.
Experts say this also provides an opportunity for advanced infrastructure products for digital cable and data-over-cable services that re-use reclaimed bandwidth for HDTV delivery, countering competition to the 100-plus HD channel universe offered by satellite and fiber-to-the-home operators.
Cable MSOs are in a deadline to transfer into all-digital however they are showing keen interests in retaining their analog spectrum as analog signals consume a disproportionate amount of signal space, as compared to all-digital transmission. An all-digital network allows the Cable MSO to operate fully digitally up to the “last tenths of a mile” providing improved efficiency and maximizing the footprint and value of existing infrastructure.
Vecima’s new products allow Cable MSOs to reclaim analog spectrum all the way to a multi-dwelling unit or a network service group of households, at the very outer edge of the network. This increases available bandwidth for the 100-plus HDTV channel race and provides additional revenue generating opportunities for Cable MSOs.
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Nathesh is a contributing editor for TMCnet. To read more of Nathesh's articles, please visit his columnist page.

Edited by Michael Dinan