This month, it was made public that Comcast has chosen enterprise licensing for Harmonic's CableOS, committing to $175m in software license fees over a term of four years. This is a further development in the relationship between the two companies, following a warrants deal signed by Comcast in 2016.
Slow and steady wins the race for Harmonic
Since launching its virtualized CMTS product and full-spectrum DOCSIS 3.1 Remote PHY systems in late 2016, Harmonic has voiced confidence in its ability to appeal to cable operators and make strides in the CMTS/CCAP market. Since then, the company has made notable gains in both areas. It has had several significant wins in its cable access business over the past couple of years, including a partnership with the National Cable Television Cooperative (NCTC), a collective of 750 independent member cable operators, and one with ComHem, one of the leading cable operators in the Nordic region.
As one of the world's top cable operators, Comcast tends to be at the forefront when it comes to network upgrades and rolling out next-generation services. This new deal shows the faith that a major tier-1 operator has in a smaller CMTS/CCAP vendor's ability to support a major transformation to virtualization as well as the move to a distributed access architecture (DAA).
The CMTS/CCAP market has showed a slowdown in the past couple of quarters, due to factors including tier-1 enterprises finishing their DOCSIS 3.1 upgrades on the network side and operators waiting for DAA technologies to finish being fleshed out to perform with various back-office applications. This new deal shows that the market is starting to pick up again, at least for Harmonic, with other cable operators likely to follow Comcast's momentum by the second half of 2019.
"Next-gen cable broadband networks hinge on disaggregation," SPT002-000189 (March 2019)
Distributed Access Architecture and Fiber Deep, SPT002-000142 (November 2018)
Jaimie Lenderman, Senior Analyst, Service Provider Technology