The standardization of cable modems finally is paying off as a vehicle for driving hardware and service sales through consumer electronics retail outlets.
For a long time, even after the industry began switching to the DOCSIS (Data Over Cable Services Interface Specification) standards-based platform, availability of the modems through retail was spotty at best. This deprived cable operators of a significant way to win acceptance as part of the mainstream in Internet access. Retailers insisted on an ongoing share of revenue in exchange for stocking the modems, which cable operators resisted. The scale of DOCSIS deployments and acceptance has changed the way the game is played, with retailers now finding they risk losing out to competitors if they don't offer the modems.
Nothing better illustrates the trend than the rise of Toshiba America Information Systems Inc. to the No. 1 ranking in DOCSIS modem sales, as recently reported by Kinetic Strategies Inc. With 430,000 units shipped during the first quarter, Toshiba has captured 29.3 percent of the North American market, surging past long-standing market leader Motorola Corp., which relies largely on sales of equipment directly to cable operators.
Toshiba, which is focused heavily on the retail channel as a supplier of TV sets and other consumer products, has leveraged that position to win wide-scale distribution through leading chains such as Best Buy and CompUSA, says Christopher Boring, TAIS manager for new business development. "We're seeing between 15 and 20 percent of our monthly volume coming from retail," he says.
