Triple Play Services to Spur Growth in the CATV Test Equipment Markets

Frost: With both telecom operators (telcos) and cable TV (CATV) operators are battling it out to win subscribers. A triple play strategy that efficiently bundles voice, video and data services could prove a key determinant of the consumer’s eventual choice. Hence, the need for quality triple play services is promoting the growth of the global CATV test equipment markets and ongoing advances in communication applications have further alerted the CATV test equipment market to the importance of equipment developments and upgrades. Revenues in this industry totaled $535.0 million in 2005 and is expected to reach $755.6 million in 2012.

Triple play services are likely to have a high impact on the CATV test equipment market. With the increasing use of fiber-optic based technologies, demand for optical time domain reflectometers (OTDRs) is increasing, mainly due to the growing uptake of high definition television (HDTV), Internet protocol-based television (IPTV), fiber to the curb, home, and premise (FTTx), as well as other fiber-optic based technologies.

However, as telecom operators begin to offer triple play services, they are emerging as a potential threat to the cable operators. Even though the telcos use different network architectures to deliver all their service packages, by offering video services, they are entering into the hardcore triple play arena. Presently, video services constitute an estimated 10 percent of the total service offerings of the telcos.

Quality of service (QoS) in telephone, video, Internet traffic and communication data traffic will play a major role in determining the success or failure of such service offerings,i. Therefore, it is essential for test vendors to develop skills that enable them to offer more efficient services to the end users, thus providing these services more efficiently and economically.

A key restraint confronting the CATV test equipment market is the presence of the secondary market. While the gray market does not exist for new technologies, used equipment is still a hindrance to the growth of the market.

Nevertheless, the impact of this restraint is likely to reduce greatly with the emergence of new technologies and next-generation networks. Presently, HDTV is the dominant technology driving the growth of the CATV test equipment market and as it stabilizes with high-speed Internet and increased bandwidth, the impact of this restraint could subside significantly.

world Cable TV Test Equipment Markets

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