Cable network operators in North America will increase their capex spending through at least 2010 in an effort to compete more effectively with telephone and “Cable industry infrastructure expenditures will keep rising through at least 2010, as North American MSOs upgrade their plant and equipment for the rollout of such new technologies as switched digital video [SDV], tru2way, and Docsis 3.0,” says Alan Breznick, author of the Cable Next-Gen Technology Quarterly Market Tracker. “After a slow start in the first quarter of this year, MSOs began to ramp up purchases in the second quarter, and that trend is expected to continue for the second half of this year.”
Sales of set-top boxes were the biggest revenue growth driver in the second quarter, according to Breznick. “Digital set-top shipments will nearly double in 2009 and stay higher over the next few years as cable operators seek to take advantage of the upcoming U.S. DTV transition by signing up new video subscribers. HD and DVR box shipments will keep rising steadily in the years ahead as well.” MSO spending on advanced technologies such as SDV, tru2way, and Docsis 3.0 is just beginning to ramp up but will accelerate quickly in 2009-2010, Breznick adds.