Repeating the strong performance of the third quarter, Taiwanese cable modem shipments hit a new high in the fourth quarter of 2004 to reach approximately 3.7 million units. Volume grew 68% year-on-year and 5% sequentially.
In North America and Western Europe cable operator promotion of VoIP (Voice over Internet Protocol) services and the rollout integrated data, voice, and video packages generated an increase in new cable modem subscribers. The existing subscriber base also saw an increase of the percentage of VoIP users. In China, cable operators offered broadband services at rates cheaper than those offered by telecoms, bringing about rapid growth in new cable modem subscribers. These developments stimulated the shipment volume of major cable modem brands including Motorola, Terayon, Thomson, Scientific Atlanta, and Arris, which brought more orders into the hands of Taiwanese first tier players ASUSTek and Askey. Taiwanese data cable modem volume thus reached 2.4 million units, while E-MTA (Embedded Multimedia Terminal Adapter) shipments totaled 1.1 million units.
E-MTA helped push an increase in cable modem shipment value. E-MTA accounted for 30% of fourth quarter Taiwanese shipments compared to 24% in the third quarter owing to VoIP promotions in North America. Widespread adoptiong of batteries by cable operators also rendered these components a basic specification of E-MTA, supporting a rise in E-MTA prices. Taiwanese cable modem shipment value grew 106% year-on-year and 13% sequentially to reach US$157.1.
In the first quarter of 2005 E-MTA volume to North America is expected to continue increasing due to large-scale VoIP deployments by Comcast, Cox, and Shaw. However, the cable modem industry will face aggressive deployment of triple play services by DSL providers in various regions as well as their standing low-price advantage. New adds are thus expected to slow, particulary in North America and Western Europe. Taiwanese cable modem shipments are thus expected to hit approximately 3.8 million units in the first quarter of 2005, 3% sequential growth.
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