Zacks_Analysts' Blog : Comcast to Deploy SDV - Analyst Blog

Comcast Corp. (CMCSA), the largest cable MSO in the U.S. , in on the verge of rolling out switched digital video (SDV). Recently in a filling to FCC, Comcast stated that it will adhere by the agency’s SDV policy. SDV technology distributes digital video content through cable network in a cost-effective manner so that additional activities can be performed using the free bandwidth.

 

Comcast is aggressively reclaiming 40 to 50 of its existing analog channels to free up spectrum for DOCSIS 3.0 technology. Deployment of SDV will also free up bandwidth that can be used by Comcast to offer more than 150 high-definition TV channels (HDTV), HD video-on-demand programs, and DOCSIS 3.0.

 

We believe deployment of SDV is in line with Comcast’s decision to offer more IP-based video and overall service convergence, implementation of managed IPTV services and shifting toward more targeted advertisement.

 

According to our view, major SDV equipment manufacturers that  may  benefit from Comcast are Cisco Systems Inc. (CSCO) and Motorola Inc. (MOT) since these two companies are the two initial SDV platform supplier of Comcast for its trial run. Arris Group Inc. (ARRS) and Harmonic Inc. (HLIT) will also benefit from additional edge QAM business from Comcast.

 

SDV pioneer BigBand Network Inc. (BBND) may also be a possible beneficiary due to its enhanced SDV platform supported by an innovative software solution called Converged Video Exchange (CVEx). With CVEx, cable MSOs can deliver both real-time and on-demand video services to IPTV set-top boxes, personal computer and mobile handsets.

 

We believe rolling out of SDV is essential for Comcast due to this technology’s proven track record of a bandwidth-efficiency tool. Major Cable operators such as Time Warner Cable Inc. (TWC), Cable Systems Corp. (CVC) and Cox Communications Inc are aggressively deploying SDV. Industry predicted that SDV may be deployed to about 90 million homes in the U.S. by the end of 2012 from 35 million homes at the end of 2009.