2013/07/25 Politics playing role in growth of cable broadband and Ethernet over Coax (EoC) in China

Campbell, CALIFORNIA, July 24, 2013—Market research firm Infonetics Research released excerpts from its 2013 Ethernet over Coax (EoC) Equipment and Subscribers in China report, which tracks market size and subscribers for EoC master/headend and modem hardware in China.

“The biggest challenge facing cable operators in China has nothing to do with technology or competition. Instead, it’s politics that will make or break Ethernet over Coax rollouts,” cautions Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.

“After last year’s turnover among Communist Party leadership, as well as in key positions within SARFT, the emphasis on China’s NGB (next-generation broadband) network project has been called into question, and it’s adversely impacting infrastructure build-outs and subscriber additions,” adds Heynen. “Still, there’s a huge opportunity for Chinese cable TV operators looking to break into broadband. It’s just going to take longer than anyone expected.”

• Despite aggressive pricing and service bundling, Chinese cable operators are having a difficult time adding new subscribers: As of June 2013, nearly 25 million homes had been passed with EoC services, with only 4.9 million subscribers—a take rate of less than 20%
• By 2017, Infonetics expects the Ethernet over Coax equipment market in China (including master/headend units and modems) to reach $431 million, with EoC master units making up around 60% of total revenue
• C-DOCSIS is the fastest growing EoC master/headend technology, with an Infonetics-projected 2012–2017 CAGR of 225%