Linksys has debuted its first retail product to combine a DOCSIS 3.0 modem with a WiFi router.

The product, called the AC1900 Dual-Band Cable Modem Router (CG7500), combines a D3.0 modem capable of bonding 24 downstream channels and eight upstream channels, with 802.11ac WiFi and six antennas, and also includes four Gigabit ports and one USB 2.0 port. The device’s “Tri-Band” technology supports three dedicated WiFi bands that, the company said, can support combined speeds up to 4 Gbps.

The company confirmed that the device uses the Intel Puma 6 DOCSIS 3.0 chip, but notes that it includes a new set of firmware.

Taking aim at consumers who are looking to sidestep monthly rental/leasing fees, the new model is already approved for use on Comcast and Charter Communications networks, with more to be added to the list in the coming weeks. The CG7500 carries an estimated street price of $199.97, and is available now for pre-order , and will be available for in-store purchase this weekend, the company said.

In addition to sales at its own site, Linksys.com, the CG7500 will also be available through a mix of online and brick-and-mortar retailers, including Amazon, Best Buy.com, B&H, Micro Center, New Egg, Office Depot, Target and Walmart, Fry’s, and Meijer.

Linksys, acquired by Belkin from Cisco Systems in 2013, reentered the retail cable modem market last year, and competes with players that include Arris, Netgear, TP-Link and Zoom Telephonics, which now licenses the Motorola brand.

Jeff Heynen, consulting director and senior research analyst in SNL Kagan’s Media & Communications unit, has estimated that retail sales make up 10% to 15% of the total DOCSIS CPE market.

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Per recent NPD data, Arris holds about 52.3% of the retail market for DOCSIS modems, followed by about 32% for Netgear, 5.8% for Linksys/Belkin, and 4.6% for Motorola/Zoom, and 3.2% for TP-Link.

At the CES confab in January, Linksys also showed off its first DOCSIS 3.1-based modem, which is expected to hit retail later this year.

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“Combining the Wi-Fi router with a cable modem as a single solution helps consumers declutter their home environments while eliminating extra hardware rental costs charged by most cable companies” Brian Nickell, product manager at Linksys, said in a statement. “Our entrance into the gateway market shows our commitment in providing consumers with high performance cable products combined with the latest wireless technology to deliver the ultimate Wi-Fi experience throughout the home.”

Though the vast majority of cable high-speed Internet customers still lease modems and gateways from the operators, vendors have been ramping up their game in pursuit of the smaller retail market.

Zoom Telephonics, for example, is already seeing sales spike following the launch of a DOCSIS modem product line emblazoned with the Motorola brand. Linksys, meanwhile, has reentered the retail cable modem market under its new owner, Belkin.

Both companies are looking to challenge competitors with a sizable lead in the retail market. Arris had about 57.7% of the retail share for DOCSIS modems, followed by Netgear (26%) and TP-Link (3.4%) , according to NPD data from late October. Linksys hasn’t been back in the fold for long, but it has already secured about 5.2% of the market, NPD said.

They are all fighting for a slice of the overall DOCSIS consumer premises equipment market. Jeff Heynen, consulting director and senior research analyst in SNL Kagan’s Media & Communications unit, estimates that retail sales make up 10% to 15% of the total market.

He projected total DOCSIS CPE shipments in North America will hit 24.14 million units, meaning that the retail split this year will likely be in the range of 2.4 million to 3.62 million units.

RENTAL FEE SAVINGS

A Linksys-sponsored survey of 1,007 U.S. adults conducted last year by IDC found that one-in-five consumers purchased their cable modem from a retailer, and three-quarters did so to avoid monthly rental fees.

“People still, by and large, rent their modems through the operators,” Heynen said, noting that cable operators have been adept at bundling in WiFi and managed services, as well as integrated devices that support their VoIP services. “They’ll accommodate [retail], but they certainly won’t go out of their way.”

Linksys formally rejoined the cable-modem retail market in June, debuting a trio of DOCSIS 3.0-based modems based on Intel silicon, including a high-end model that can bond up to 24 downstream channels. Its renewed focus on retail followed Belkin’s acquisition of Linksys from Cisco Systems in 2013 and added it to Belkin’s home-networking business (Cisco acquired Linksys in 2003 for $500 million).

Linksys, which hawks modems at outlets such as Walmart, Best Buy and in its own online store, has seen a “nice lift” in sales since it started selling the new product line in April, a spokeswoman said.

Also making noise is Zoom, which introduced its first Motorola-branded retail cable modem products in February.

The product launch followed a five-year licensing deal announced in May 2015 that gave Zoom the exclusive rights to use the Motorola brand in cable modems/routers and set-tops (as well as cable modems inside set-tops) sold at retail in the U.S. and Canada. Motorola branding rights were previously with Arris, which now uses the SURFboard brand.

Zoom has since secured worldwide rights to the Motorola brand for modems, gateways, WiFi routers, range extenders and other WiFi products.

Zoom, which uses its own moniker as a “value brand,” has already seen a lift from the Motorola brand, which it uses for “premium” level products. Its Q3 revenues reached $6 million, up 78% from the year-ago quarter and up 51% from Q2.

Zoom expects to expand to six Motorolabranded products before the end of 2016. Frank Manning, Zoom’s CEO, said in an interview that the company is also working on a Motorola modem based on DOCSIS 3.1, cable’s new multigigabit platform for hybrid fiber-coax networks, and hopes to submit it to CableLabs for certification testing this year. “All the sales growth is coming from the Motorola brand,” he said on the company’s recent Q3 earnings call.

SHELF SPACE NEEDED

Zoom estimates that it has cable modem placements in more than 5,500 retail outlets, and offers products in stores such as Best Buy, Walmart and Target stores, as well as outlets like Amazon.

“We need to get more SKUs [stock keeping units] and shelf space,” Manning said. He sees $30 million of sales per year as Zoom’s break-even point, and an annual revenue run-rate of $50 million as an “achievable” goal.

He said dislodging incumbents from that shelf space has been “harder than expected … There’s a position of power when you’re on the shelf.”

And though retail is Zoom’s primary focus, Manning also opened the door to direct deals with MSOs. “We’re seriously looking at giving it a try,” he said, noting that Zoom is already in discussions about a potential hire focused in that area. “Think of it as an experiment; [there’s] no guarantees that we’ll be successful.”

Following up on plans announced at CES in January, Linksys has launched two DOCSIS 3.0-powered cable modem products for sale at retail, with a third model that will become available this summer.

Here’s Linksys’s initial lineup:

-CM3008, an 8x4 modem for $59.99 (for plans under 100 Mbps)

-CM3016, a 16x4 modem, set for release this summer (for plans up to 250 Mbps; pricing to be announced).

-CM3024, a 24x8 modem for $129.99 (for plans over 250 Mbps).

Linksys’s new models are built on Intel’s Puma 6 chipsets.

Linksys said its new retail products have been deemed compatible with Charter Communications, Comcast, and Cox Communications.

In January, Linksys also announced plans for the CG7500, a gateway device that combines a 24x3 D3 modem with dual-band 802.11ac WiFi, four Gigabit Ethernet ports and a USB 2.0 port.  At the time, Linksys slated the CG7500, set for a summer release, and a price of $249.99.

The company’s renewed focus on retail comes after Belkin acquired Linksys from Cisco Systems in 2013 and added it to Belkin’s home networking business (Cisco acquired Linksys in 2003 for $500 million).

Linksys’s reentry will put some retail pressure on suppliers such as Arris, Netgear and Zoom Telephonics, which launched a new line of Motorola-branded modems earlier this year.

Linksys is selling the its new products at Linksys.com and via retailers such as Amazon, Frys, MicroCenter, Newegg and Staples. Among other retailers, the CM3008 is only available at HH Gregg and Walmart, while the CM3024 only will be available at OD Max and Fred Meyer.

Linksys will target broadband subscribers who want to avoid monthly product lease fees. It cited an IDC study it sponsored that found that two-third of consumers who get their modems from a cable operator are paying rental fees of about $10 per month. Just one in five purchased their modems from a retailer, and 75% did so in order to avoid the fee, the study found.

“Consumers can save up to $120 a year if they purchase their own cable modem instead of paying monthly rental fees,” Brian Nickell, cable modem product manager at Linksys, said in a statement. “With rental fees being on average $10 a month, consumers can have our CM3008 paid off in as little as six months and have the latest high performance modem that matches the broadband plan they have subscribed to.”