Arris continues to struggle with the global shortages of key electronic components, which it said was the principal cause of a 13% drop in CPE sales in the second quarter.

“Most companies like us are in an environment where trying to secure supply is on a week-to-week basis and prices fluctuate pretty significantly,” Arris CEO Bruce McClelland told investment analysts during the company’s second quarter earnings call last week.

“We're not in a position we can absorb those costs. And so, we've been pretty upfront and open with customers on what the price increases are,” McClelland added.

Related: Arris to Be ‘More Selective’ With Its Set-Top Box Business

Arris conceded in March that it has been among the suppliers affected by spiking global demand for dynamic random access memory (DRAM) chips. During its Q2 call, the company also conceded that the strained supply of multilayer ceramic capacitors (MLCC) is also taking a toll on business.

MLCCs are used in a wide range of electronic devices—everything from modems and gateways to smart phones to pay TV set-tops. In June, the National Cable TV Cooperative issued a warning to its operator constituents to expect delays on product shipments. And one Midwestern operator has admitted to switching its modem supplier from Arris to Hsinchu, Taiwan-based supplier Hitron.

For his part, McClelland said he visited Asia himself in July to meet with key parts suppliers.

“It's a reality of the entire market at this stage and we'll stay close both on the supply side and on the customer side to be as optimized as we can around the cost of production,” he said.

Related: Arris to Unload Taiwan-Based Set-Top, Modem Factory

Arris saw revenue in its CPE division decline from $1.15 billion in the second quarter of 2017 to $1 billion. Broadband device revenue declined 17.1% year over year to $405 million, while video CPE revenue declined 7.6% to $603 million.

In addition to raising prices to account for rising components costs, Arris said it was shifting focus to profitability and eliminating “low-contribution customer engagements.”

For Arris, and a broad array of other similarly situated companies rooted in electronics manufacturing, the shortages might not ebb soon.

With sectors like the automotive industry using exponentially more MLCCs these days, the leading global manufacturer of these parts, TTI, released a memo in April that indicated a somewhat intractable problem.

“We have reached a point that some manufacturers are concentrating their future activity on smaller case sizes and less commoditized technologies of the market like high voltage and flexible termination, with a particular focus on high-reliability end-markets such as automotive and medical,” the company said. “So while manufacturers are adding capacity, it’s generally not for commercial commodity parts—making this market condition even more difficult to navigate.”

Canadian operator Rogers Communications has begun to deploy a DOCSIS 3.1 gateway from Hitron that’s initially being used to support broadband subs on some of the MSO’s highest-level speed tiers, including its 1-Gig offering.

Rogers hasn’t formally announced the rollout, but a Rogers network architect has posted some details about it on the operator’s community forum, and Rogers broadband subs have begun to post images and other details about the new device on the DSL Reports message boards.

Per the Rogers forum posting, the device in question is the Hitron CODA-4582, a DOCSIS 3.1 gateway that uses the Intel Corp. Puma 7 chipset. Hitron’s D3.1 device recently obtained certification from CableLabs.

RELATED: Hitron ‘Coda-45’ Modem Nets DOCSIS 3.1 Certification

“From a technical perspective, there is still a lot of testing going on and some enhancements are already planned to be deployed between not and the end of January,” the post read, noting that the device isn’t yet IPv6-enabled but should be in the January release.

The post also notes that the Hitron device will available in stores starting Dec. 13, and will be the “new default” product for Rogers  Gigabit customers. Current subs on Rogers’s 1-Gig and “250u” (250 Mbps downstream/20 Mbps up with unlimited data) “Ignite” tiers “should be able to swap their existing gateway without issues,” the posting adds.

Rogers has been asked for additional detail about the rollout as well as pricing on the Hitron gateway. 

UPDATE: A Rogers official confirmed that the operator has begun to deploy DOCSIS 3.1 on its network while also making the new HItron gateway availalbe. "This week, starting with our Gigabit Internet customers, we're inviting them to swap their existing modem (free of charge) for the new modem that will offer more capacity for faster speeds, more robust performance and more capacity to support our customers’ growing needs," the official added in an email to Multichannel News. Regarding availability through Rogers stores, the MSO is not selling the Hitron device at retail but letting gigabit customers swap out their existing modems at those outlets. 

South of Roger’s border, Netgear is gearing up for the retail release of its first DOCSIS 3.1-certified device, the CM1000. Comcast and Cox Communications have already approved it for use on their networks. Arris is also getting ready to offer a D3.1 modem, the  SurfBoard 8200, at retail.

RELATED: Netgear Hatching More DOCSIS 3.1 Retail Efforts

Hitron Technologies has become the first cable modem supplier to notch DOCSIS 3.1 certification for a product that is powered by Intel Corp.’s Puma 7 chipset.

Hitron’s CODA-45 modem model, which also features a cable receiver and amplifier chipset from MaxLinear tailored for D3.1, achieved that status in certification wave 118, according to CableLabs’s most updated list of certified products.  

RELATED: MaxLinear Has Shipped 100,000-Plus DOCSIS 3.1 Chipsets

Hitron joins a growing list of vendors that have achieved CableLabs certification, an interoperability achievement required for retail distribution and typically one that most MSOs require from their cable modem vendors.

Several vendors have already had products certified by CableLabs for DOCSIS 3.1based on silicon from Broadcom – Humax, Arris (for a model tagged for retail distribution), Askey, CastleNet, Netgear, Sagemcom, Technicolor, and Ubee Interactive.

Hitron showed off its first D3.1 product at the SCTE/ISBE Cable-Tec Expo in September.

Hitron said the CODA-45 is the first certified device for its multi-gigabit family of consumer premises equipment, adding that the model has already been sampled and evaluated by “most of North Americas’ major operators.”

The vendor’s first D3.1 model supports up to 5 Gbps downstream and up to 1 Gbps upstream when fully-loaded.  The initial batch of D3.1 modems are hybrids in that they can support both DOCSIS 3.1- and DOCSIS 3.1-based signals.

The D3.1 spec was initially designed to support up to 10 Gbps down and at least 1 Gbps upstream, though a new “Full Duplex” enhancement aims to deliver symmetrical 10-Gig capacities.

RELATED: Cable-Tec Expo: ‘Full Duplex’ DOCSIS Speeds Ahead

Hitron’s certification comes as several cable operators, including Comcast, Videotron, RCN, and WideOpenWest, among others, move ahead with DOCSIS 3.1 trials and deployments.

RELATED: Comcast Sets DOCSIS 3.1 Expansion, Launches 1-Gig in Detroit

Get complete coverage of Cable-Tec Expo 2016.

Hitron Technologies Americas said it will demo CODA, what it’s billing as the first DOCSIS 3.1-based cable modem gateway to use Intel’s Puma 7 chipset, at the upcoming SCTE Cable-Tec Expo in Philadelphia.

Perhaps you've already had an opportunity to see it. Hitron showed off CODA at the 2015 Cable-Tec Expo in New Orleans.

But to recap, Hitron’s new wares will run the Puma 7, a dual-core Intel Atom processor outfitted with speedy 14nm technology. It also supports third-party 4x4 MIMO WiFi and voice recognition modules, according to the companies.

Hitron’s D3.1 platform will be entering the market amid small, early deployments of the new multi-gigabit platform for HFC networks, and ahead of a ramp up that’s expected to occur in 2017.

And it’ll have plenty of company. Several vendors have already had products certified by CableLabs for DOCSIS 3.1 – Humax, Arris (for a model tagged for retail distribution), Askey, CastleNet, Netgear, Sagemcom, Technicolor, and Ubee Interactive.

Get more #INTX2016 news.

DOCSIS modem and gateway maker Hitron and chipmaker MaxLinear have teamed on the launch of the CMS-02, an embedded spectrum analysis module that enables MSOs to monitor their networks while keeping network downtime in check. 

The jointly-developed module, which works with DOCSIS 3.0 and DOCSIS 3.1, also simplifies network monitoring and analysis for cable operators deploying triple-play services by allowing the network to be continuously monitored at strategic locations, they said.

This ability to divide the network into smaller segments, they claimed, can reduce network disruptions while also helping MSOs to troubleshoot noise and interference issues.

The CMS-02 is designed to provide full spectrum upstream and downstream network monitoring beyond the DOCSIS spectrum, including video and MPEG layers, the companies said, noting that it can also be managed remotely.

Hitron said it will be conducting a field trial of 100 units on five different use-cases, including DOCSIS 3.1 nodes, fiber deep nodes, mid-split upgraded nodes, legacy hybrid fiber-coaxial (HFC) node augmentation, and headend monitoring and reporting.

“Locating upstream and return noise in the network has been a long-standing problem for cable operators and drives significant operational overhead,” Len Dauphinee, VP and CTO of MaxLinear’s Broadband Group, said in a statement. “MaxLinear’s Full-Spectrum Capture technology enables the Spectrum Analysis features of CMS-02. The CMS-02 increases the efficiencies from both the network operation and management standpoints, allowing cable operators to maximize the level of network performance and support that they can provide to their customers.”

“Our close collaboration with the MaxLinear engineering team on this product has resulted in a solution that is focused on addressing the network analysis pain points of cable operators,” added Greg Fisher, CTO for Hitron Technologies Americas. 

Hitron Technologies Americas will use this week’s SCTE Cable-Tec Expo in New Orleans to trot out the CODA, a DOCSIS 3.1-based cable modem that’s powered by Intel’s Puma 7 chipset.

Hitron (booth 1235) said the CODA, fully-loaded, will support up to 5 Gbps downstream and up to 1 Gbps in the upstream. Like all modems in the initial DOCSIS 3.1 wave, Hitron’s will be a hybrid that supports both DOCSIS 3.0- and DOCSIS 3.1-based transport signals.

The Puma 7 is a dual-core Intel Atom processor that supports third-party 4x4 MIMO WiFi and voice recognition modules, noted Hitron, which delivers more than 1 million DOCSIS products annually to MSOs worldwide. Hitron’s announced DOCSIS modem customers include Videotron, GCI, Mediacom Communications, Suddenlink Communications and Cable One, among others.

“The Intel Puma 7 will enable innovators like Hitron to design true multi-gigabit broadband modems and home gateways with the latest DOCSIS 3.1 technology,” said Keith Wehmeyer, general manager for the cable segment at Intel’s Connected Home Division.

Update: MaxLinear also announced today that  Hitron has selected its MxL278 Full-Spectrum Capture (FSC) digital cable front-end receiver and MxL236 upstream programmable gain amplifier for its new family of DOCSIS 3.1-based consumer premises equipment. 

DOCSIS 3.1 product activity has been heating up ahead of Cable-Tec Expo. On Monday, Arris introduced two D3.1-based models – one for direct sale to MSOs, and another tagged for retail distribution.

Hitron Technologies Americas said its supplying the DOCSIS 3.0 model that is powering Videotron’s gigabit pilot in Montreal.

That model, the CDA3-35, can bond up to 32 D3.0 downstream channels (up to 1.2 Gbps bursts in North American DOCSIS systems that use 6MHz-wide channels), and up to eight upstream channels. The model is equipped with Intel’s Puma 6-MG DOCSIS processor and MaxLinear’s 32-channel MxL268 tuner, and is characterized to be a “drop-in and software compatible upgrades” to Hitron’s prior 16- and 24-channel D3.0 devices.

Suddenlink Communications, GCI of Alaska and Mediacom Communications are also using the Hitron model for their recently launched 1-Gig residential services. 

“The ever-increasing demand for bandwidth to support Internet-based applications and services, on-demand programming and other bandwidth-intensive services, requires us to deploy CPE that is on the cutting edge of technology,” said Videotron CTO Daniel Proulx, in a statement. “The Hitron CDA3-35 delivers the performance that enables us to provide our customers with the services they desire and the reliability they demand.”

Videotron serves about 1.77 million cable TV subs, and 1.54 million high-speed Internet customers. Its primary competitor is Bell Canada.

GCI has booted up a residential 1-Gig broadband service in parts of  Anchorage that will run on DOCSIS 3.0 and require a Hitron-made modem that’s capable of bonding 32 downstream channels.

GCI’s new service called 1 GIG red, pumps out a max downstream of 1 Gbps. Pricing for the service and the capabilities of the tier’s upstream were not immediately known.

Update: GCI, an official said via email, is selling 1 GIG red for $174.99 per month, the same price as the MSO’s prior 250 Mbps service. The 1-Gig downstream is paired with an upstream that maxes at 50 Mbps, up from 10 Mbps with the prior red service ("red" is the brand assigned to GCI’s top Internet service tier. It also offers 100 Mbps, 50 Mbps and 10 Mbps services). 

The operator said it will make the new service available to “virtually all” of its cable subs in Anchorage by year-end. GCI serves about 100,000 homes in the city. 

It has not provided specific plans to offer 1-Gig to other markets other than to say that Juneau, Fairbanks and Mat-Su are among the markets in line, expecting to expand on rollouts in early 2016 . In the meantime, GCI said upgrades Mat-Su, Juneau, Fairbanks, Kenai/Soldotna, Sitka will enable downstream upgrades for the operator’s fastest tiers there – rising from 250 Mbps to 500 Mbps.

From a modem standpoint, GCI is following a similar game plan that’s being run by Suddenlink and Mediacomm Communications, which are also using the new Hitron D3.0 model (the CDA3-35) for their respective 1-Gig residential tiers. The GCI official noted that DOCSIS 3.1, an emerging multi-gigabit platform for HFC networks, "is the next step in meeting technology needs of the future and GCI is getting ready for it."

According to an FAQ, GCI’s 1 GIG red service will be subject to the MSO’s new “No  Worries” data usage policy, setting a monthly ceiling of 750 GB (up from 600 GB for the prior "red" tier.  Once customers on the 1-Gig plan exceed that limit, they can purchase addition buckets of data (30 GB) for $10 each, upgrade to a different plan, or be set at a “basic level of service” (less than 1 Mbps) with no overages.

“Today we’re proud to begin the launch of 1 GIG red in Anchorage while many major Lower 48 cities like Los Angeles, Boston, and Washington D.C. wait for comparable 1-gigabit service,” said GCI president and CEO Ron Duncan, in a statement. ““With 1 GIG red, we’re quadrupling Internet speeds for our red customers and propelling Alaska to the forefront of technology, all without any increase in our red customers’ bills.”

GCI is also delivering 1-Gig service (branded as “fiber re:D”)  in select areas of cities such as Anchorage and Juneau using fiber-to-the-premises technology.

Mediacom Communications has joined a growing list of MSOs that are deploying a DOCSIS 3.0-powered cable modem from Hitron Technologies Americas that can provide downstream speed bursts of more than 1 Gbps. 

That model, the Hitron Gigabit Cable Modem (CDA-3-35), can bond 32 downstream channels and eight upstream channels, meaning it can handle up to 1.2 Gbps in North American systems that use 6MHz-wide channels, and up to 1.6 Gbps on EuroDOCSIS systems that utilize 8MHz-wide channels.

Mediacom’s deployment of the Hitron modem comes soon after the MSO announced it would introduce a 1-Gig residential broadband service in several areas of Missouri, including Jefferson City and Hots Summit and the counties of Boone, Cole and Callaway. That 1-Gig (downstream) offering that’s being paired with an upstream that maxes out at 50 Mbps, is set to become available Tuesday (Sept. 15), and initially retail for $149.99 per month. 

Suddenlink Communications and GCI are among other operators that are rolling out Hitron’s CDA3-35 model, which is equipped with Intel’s Puma 6-MG DOCSIS processor and MaxLinear’s 32-channel MxL268 tuner.   Hitron says it ships more than 3 million DOCSIS devices worldwide each year. 

“Deploying Hitron’s new Gigabit DOCSIS 3.0 cable modem provides us with the performance and bandwidth required to successfully deliver our advanced service offerings to maximize customer satisfaction and further set us apart from the competition,” JR Walden, CTO for Mediacom, said in a statement “The delivery of the state-of-the-art, differentiated services that Mediacom offers requires CPE that delivers fast speeds and reliable performance.”

“Cable operators are under increasing competitive pressure to deliver faster Internet speeds and differentiated multimedia and on-demand services to grow their customer bases and increase their revenues,” added Todd Babic, chief sales and marketing officer for Hitron Technologies Americas. “Mediacom is an ideal candidate for our new Gigabit cable modem as they are launching advanced integrated solutions that push the performance envelopes of most cable modems.”

Hitron Technologies has taken the wraps off a new DOCSIS 3.0-powered modem that can deliver downstream speed bursts in excess of 1 Gbps.

Hitron’s “Gigabit Cable Modem,” a model also known as the CDA3-35, can bond up to 32 downstream channels and up to eight upstream channels, representing an advance over 24x8 DOCSIS 3.0 modems. The new model can handle up to 1.2 Gbps in North American systems that use 6MHz-wide channels, and up to 1.6 Gbps on EuroDOCSIS systems that utilize 8MHz-wide channels.

The CDA3-35 is equipped with Intel’s Puma 6-MG DOCSIS processor and MaxLinear’s 32-channel MxL268 tuner, which, Hitron noted, are “drop-in and software compatible upgrades to prior 16- and 24-channel solutions.” Broadcom has also announced a 32x8 DOCSIS 3.0 solution.

All of those options are appearing ahead of DOCSIS 3.1, an emerging multi-gigabit platform for HFC networks. The first D3.1 modems will be hybrids that support both DOCSIS 3.0 and DOCSIS 3.1-based  traffic.

Hitron, which ships more than 3 million DOCSIS units worldwide per year, also announced that GCI of Alaska and Suddenlink Communications are the first MSOs to deploy the CDA3-35 for residential and business customers.

Last month, Suddenlink launched a 1 Gbps (downstream) residential broadband service to an initial set of markets -- Bryan-College Station, Texas; Nixa, Mo.; and Greenville and Rocky Mount, N.C. That service, which uses DOCSIS 3.0, is paired with a 50 Mbps upstream, and sells for about $109 per month as a stand-alone service, and for less when bundled with other Suddenlink services.

Hitron claimed that the CDA3-35 is the industry’s first 32x8 D3 modem product to deploy commercially in North America.

“The rollout of gigabit cable modems into the home will enable the adoption of advanced applications such as high-definition streaming content, interactive services, home security and other next-generation connected home technologies that rely on fast, reliable broadband connectivity to the Internet,” explained Jeff Heynen, Research Director, Broadband Access and Pay TV at IHS.

“For cable operators, the availability of gigabit technology over their existing cable plant will enable them to quickly compete with fiber-based services at an affordable price point,” Jeff Heynen, research director, broadband access and pay TV at IHS, said in a statement.

“The CDA3-35 provides the fast Internet connectivity speeds that will allow MSOs to deploy next-generation interactive services to their subscribers and support the increasingly advanced applications and devices in the Connected Home,” added Todd Babic, chief sales and marketing officer for Hitron Technologies Americas.