Here’s the good thing for a tech vendor serving a dynamic video and broadband market, with new technologies such as 4K coming down the pike: “The need to refresh equipment is out there,” said Arris’ Bruce McClelland, who succeeded Bob Stanzione as CEO on Sept 1, during Goldman Sachs Technology and Internet Conference Wednesday. He ticked off a variety of new devices, ranging from advanced boxes like Liberty Global ’s EOS next-gen cloud-based box equipped with 4K capabilities and Comcast’s X1 platform, to an increasing number of client devices connected to wireless networks. The growth of these “highly capable” devices demand the need for more and better network coverage in the home to ensure the best resident experience for broadband and video, McClelland said. The set-top portion of Arris’ business continues to transition to an IP and OTT technology approach, with McClelland declaring that the division will “continue to be a solid business for us for years to come” despite talks about set-top going away. Arris is a participant in Charter’s WorldBox 2.0 program, an advanced platform aimed at expanding Charter’s current conditional-access capabilities, improving legacy hardware-based system across Charter’s new footprint with increased processing power. The company completed its Pace acquisition about a year ago.
The cable industry has been full of big consolidation over the past few years. “It’s an indication of the maturity of the industry. It’s a natural way to continue to create value for shareholders,” he said, noting on the network equipment side, consolidation seems to have slowed down. Comcast recently launched the Xfinity TV beta app for Roku, allowing users to access live and on demand programming, as well as cloud DVR recordings, without set-tops. McClelland expects similar offerings from other video providers to come, driven by the desire for consumers to get video from various devices, including consumer-owned devices and the ones supplied by video distributors. Such an approach gives customers control over their media and entertainment experiences in the home, he said. When it comes to DOCSIS 3.1, McClelland expects a gradual transition as the technology matures, rather than a full-scale migration. Arris has enabled 3.1 on various platforms through software upgrades as its customers get ready for deployment. The biggest benefit of 3.1 is “really around the efficiency of delivering data,” the exec said. One migration path, he said, is to start with network conditioning and upgrades, before adding modems connected to the network. International expansion was a big driver for the Pace acquisition, though he acknowledged that international markets have seen mixed results over the past 12 months. While EU and parts of Asia have been strong, he said Latin America was weak, partly due to currency weakness, with softness there expected to continue this year.
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