ZTE and BroadLogic Team Up to Deliver an EPON-to-QAM Gateway for the Chinese Cable Market

Event Summary

March 21, 2011 – ZTE and BroadLogic are debuting an integrated solution which combines ZTE’s C300 10G optical line terminal (OLT) and BroadLogic’s IP-to-QAM Node reference design to enable cable operators to provide digital broadcast TV and VoD services to high-density, high-rise MDUs over an EPON infrastructure. It will be demonstrated publicly for the first time during the China Content Broadcasting Network (CCBN) Exhibition at the China International Exhibition Center (CEIC) in Beijing, March 23-25, 2011.

Quick Take

Analytical Summary

• Current Perspective: Positive on the BroadLogic partnership with ZTE, wherein ZTE has integrated BroadLogic’s IP-to-QAM node reference design into its EPON ONU platform (and its overall EPON fiber access solution set). The end result is an EPON-to-QAM gateway that enables cable operators to deliver digital broadcast and VoD services over an EPON network, which many cable operators are looking to transition to (as opposed to GPON or P2P Ethernet FTTP), since EPON has more congruence with the legacy HFC/DOCSIS cable networks. Also, the Chinese cable market represents a very strong opportunity for both BroadLogic and ZTE.

• Vendor Importance: High to both BroadLogic and ZTE, as each vendor needed to develop and offer a solution designed to address the sizeable opportunity (in terms of both total market size and geographic reach) in the emerging EPON-based cable operator market. For BroadLogic, this partnership gives the company a very high potential avenue for generating solid incremental revenues thanks to ZTE’s well-established presence in the Chinese EPON market, and likewise, for ZTE, this relationship will enable it to target the cable operator market more effectively given the service delivery appeal of the EPON-to-QAM gateway solution for cable service providers.

• Market Impact: Moderate on the overall EPON and cable access market, as the BroadLogic/ZTE partnership and corresponding EPON-to-QAM gateway solution was initially announced a month ago, and the solution was demonstrated a few days later at the 2011 CableLabs Winter Conference in Atlanta, Georgia, US. Nevertheless, the demo at the China Content Broadcast Network (CCBN) exhibit this week is certainly an important event for the companies given that the Chinese cable market opportunity is massive in terms of sheer size/volume, and rival FTTP systems vendors targeting the Chinese cable market will have to respond accordingly.

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