The biggest upgrade to WiFi technology in decades doesn’t come cheap.

Tied to the virtual CES 2021, Netgear introduced one of the first routers built around the new WiFi 6E standard, the tri-band enabled Nighthawk RAXE500.

Price: $599.

Introduced in 2019, WiFi 6 represented a major evolution in the way routers communicated with devices, making signal exchanges much more efficient. The just-introduced WiFi 6E standard (the “E” standing for “extended”) uses an additional 1,200 MHz of unlicensed spectrum recently freed up by the FCC.

As more people communicate with more devices than ever in densely crowded areas, the additional spectrum is crucial for keeping signals from bumping into one another. 

Also Read: WiFi Gets Its Biggest Upgrade in Decades | TCL: Google TV-Powered Smart TVs on the Way

As the “tri-band” capability suggests, the RAXE500 supports the traditional 2.4 GHz and 5 GHz bands, in addition to 6 GHz. 

It has five gigabit ports and two USB 3.0 ports, and contains a quad-core 1.8 GHz processor.

The biggest upgrade to Wi-Fi technology in decades doesn’t come cheap.

Tied to the virtual CES conference, Netgear on Monday introduced one of the first routers built around the new Wi-Fi 6E standard, the tri-band enabled Nighthawk RAXE500.

Price: $599.

Also Read: Wi-Fi Gets Its Biggest Upgrade in Decades

Introduced in 2019, Wi-Fi 6 represented a major evolution in the way routers communicated with devices, making signal exchanges much more efficient. The just-introduced Wi-Fi 6E standard (the “E” standing for “extended”) uses an additional 1,200 MHz of unlicensed spectrum recently freed up by the FCC.

As more people communicate with more devices than ever in densely crowded areas, the additional spectrum is crucial for keeping signals from bumping into one another. 

As the “tri-band” capability suggests, the RAXE500 supports the traditional 2.4 GHz and 5 GHz bands, in addition to 6 GHz. 

It has five gigabit ports and two USB 3.0 ports, and contains a quad-core 1.8 GHz processor.

Broadening its aim at the whole-home WiFi arena, Netgear has introduced an Orbi-branded retail device that combines a DOCSIS 3.0 modem with a Tri-Band Mesh WiFi router.

The Orbi Tri-Band WiFi Cable Modem Router System, or CBK40, can provide wireless coverage in homes up to 4,000 square feet, or cover an additional 2,000 square feet areas when used in tandem with an Orbi Satellite device, Netgear said.

Netgear said the new retail device is compatible with major MSOs, including Comcast and Charter Communications, with Cox Communications to be added to that list in the “coming months.”

RELATED: Whole-Home WiFi Heats Up (subscription required)

The baseline CBR40 carries an MSRP of $299.99, while the system, which adds 1 Orbi satellite, fetches $399.99.

The primary device integrates a D3.0 modem capable of bonding 32 downstream channels (for up to 1.4 Gbps if all are used) and WiFi that can support up to 2.2 Gbps, the company said, noting that its Orbi platform is also compatible with Amazon Alexa and the Google Assistant.

RELATED: Cox Crosses Whole-Home WiFi Milestone

Though Netgear’s new wares targets retail distribution, several cable operators have also developed their own premium whole-home WiFi services. 

RELATED: Comcast Starts Rollout of ‘xFi Pods’ to Boost Whole-Home WiFi

Netgear said its board has approved a plan to separate its Arlo business, a growing unit that currently focuses on security cameras and subscription services, through an initial public offering that’s expected to be completed in the second half of 2018.

Netgear, which battles with companies such as Nest at retail, expects Arlo to issue less than 20% of its common stock in the IPO, with Netgear to retain the remaining interest. Following the IPO, however, Netgear expects that it will distribute the shares of Arlo common stock then held by Netgear to its stockholder.

A unit called Arlo Technologies will hold the Arlo business.

Netgear also announced that it expects Matthew McRae to serve as Arlo’s CEO. McRae, the former chief technology officer and head of marketing at Vizio, joined Netgear about four months ago as SVP of strategy.

Arlo makes a lineup of wireless and mobile security cameras and subscription plans for home and business users.

In addition to a free basic home offering that includes seven days of cloud recordings and support for up to five cameras, Arlo also includes subscription plans, including a $99 per year Premier plan with 30 days of cloud recordings and support up to ten cameras, and a higher-end plan that runs $149 per year with 60 days of cloud recordings. Arlo’s subscription plans start as low as $129 per year on up to $499 per year.

Netgear announced the Arlo spin-off plan as it issued Q4 results. Results at Arlo were a bright spot in the quarter. 

Netgear said consolidated revenues for the period were $397.1 million, up 7.9%, with a GAAP net loss per diluted share of $1.02.

With net revenue broken down by segment, Netgear’s Arlo unit generated Q4 revenues of $128.5 million, up from $76.97 million in the year-ago period. By comparison its connected home segment pulled down revenues of $198.7 million, down from $214.93 million a year earlier.

A lawsuit seeking class action status that targeted Netgear’s CM700 DOCSIS 3.0 modem has been dismissed.

The plaintiffs – Stewart Williams, Jeffrey Torres and Allan Hamilton, dismissed action with prejudice as to their individual claims, and without prejudice as the to claims of the putative classes, according to the closing document filed in the U.S. District Court, Northern District of California  on August 9.

The dismissal with prejudice means that the court has made a final determination on the merits of the case and that the plaintiffs are now forbidden from filing another suit on the same grounds.

The original action, filed on April 14 by the firm of Schubert Jonckheer & Kolbe, alleged that the CM700, a D3.0 powered by an Intel Corp. Puma 6 chip, suffered from a “serious defect” that results in high spikes in network latency and degraded Internet connections.

RELATED:Netgear Hit With Class Action Lawsuit

At the time, Netgear said it had “full confidence in the CM700 cable modem.”

RELATED: Arris Faces Lawsuit Targeting DOCSIS 3.0 Modem

The law firm said then that it was also investigating whether other cable modems containing the Puma 6 chipset, including modems from Linksys, Cisco, Hitron, and Arris, also suffers from the same alleged network latency defect.

Offering a hint that it’s closing in on market trials and deployments of DOCSIS 3.1, Cox Communications has added Netgear’s first D3.1-certified modem to its list of approved devices.

At present, Netgear’s CM1000 is the only DOCSIS 3.1 device approved by Cox.  Comcast has also added the CM1000 to its list of certified devices.

Cox has not announced specific plans to trial or deploy DOCSIS 3.1, but an official said more detail will be shared about that in the coming weeks. The CM1000 will work on DOCSIS 3.0 networks because initial wave of D3.1 modems are hybrids in the sense that they support both DOCSIS 3.1- and DOCSIS 3.0-based signals.

Cox has stressed that D3.1 will factor into its plan begin market- wide deployment of Gigabit services by the end of 2016.  With its “Gigablast” service, Cox is starting with an FTTP approach.

In an interview earlier this year, Cox CTO Kevin Hart noted that the MSO’s 10-year network transition plan includes “hallmarks” such as DOCSIS 3.1, node+0 (fiber deep) architectures and, eventually, Full Duplex DOCSIS, an emerging technology that will enable MSOs to deliver multi-gigabit symmetrical speeds over HFC.

RELATED: Cable Tech at a Crossroads (subscription required) 

“Starting right now and into next year, DOCSIS 3.1 is high on our radar, so we’re making great strides with the testing, deployment and trials of 3.1,” Hart said at the time.

Per the current listing on Amazon, Netgear’s CM1000 is scheduled to be released on Dec. 19 and sell for $179.99.

Netgear said recently that it also plans to distribute the CM1000 at Fry’s Electronics and Best Buy.  Newegg is promoting the CM1000 for $179.99, with a Dec. 21 release date.

RELATED: Netgear Hatching More DOCSIS 3.1 Retail Efforts

Arris has said it plans to start to selling the SB8200, another device certified by CableLabs, at retail later this month.

Hitron, Humax, Askey, CastleNet, Sagemcom, Technicolor, and Ubee Interactive have also had devices certified by CableLabs for DOCSIS 3.1.

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Netgear appears to be gearing up to sell its first DOCSIS 3.1 product at some other retailers in the weeks to come.

In addition to confirmed distribution via Amazon, Fry’s Electronics and Best Buy, a reader noticed that Newegg is promoting the CM1000 for $179.99 and has set a release date of Dec. 21.

RELATED: Netgear’s First DOCSIS 3.1 Modem Also Coming to Stores

The same reader also pointed us in the direction of this Netgear sizzle reel on YouTube about the product, which will tout the aforementioned certification by Comcast and highlight the Xfinity brand:

In addition to electronic distribution on Amazon, Netgear’s first retail modem powered by DOCSIS 3.1 will also be available at select retail outlets.

Netgear said the model, the CM1000, is in its distribution center and, in addition to Amazon, is released for Fry’s Electronics, and is expected to be released for Best Buy before the end of the month, though wider availability at Best Buy might not occur until the end of January.

RELATED: Retail Modem Market Small, but Active (subscription required)

The CM1000 appeared earlier in the week on Amazon for pre-orders for $179.99, with an expected availability date of Dec. 13. The item vanished from Amazon temporarily, but, at last check, is featured again on the site, though it’s listed as being “currently unavailable”  and absent of pricing information.  

RELATED: Netgear DOCSIS 3.1 Modem Set for Retail Debut

Via Twitter, Netgear said pre-orders should be reinstituted within the next week.

CableLabs certified the CM1000 earlier this year. This Comcast Web page also confirms that the CM1000 has been certified by the MSO, which has been expanding the reach of its DOCSIS 3.1 consumer trials. The current listing on Amazon still notes that the CM1000 has not yet been certified by Charter Communications.

Arris confirmed earlier this week that it will start to sell the SB8200, which has also been certified by CableLabs, at retail later this month and will share more details soon. 

Comcast is also expected to get into the retail game as well for products such as the XB6, a souped-up DOCSIS 3.1 gateway.

RELATED: INTX 2016: Comcast Previews New Consumer Gear

“We are taking this to retail,” Brian Roberts, Comcast’s chairman and CEO, said of the XB6 in September at the Goldman Sachs Communacopia Conference. The XB6, which will support a self-install option, will handle a wide range of Comcast services, including Xfinity Home. 

In May, FierceCable, citing a Comcast official, reported that Comcast is also considering retail availability of the Xi5, the MSO’s first device to support High Dynamic Range (HDR).

RELATED: Comcast’s First HDR Box in Employee Trials

In October, Roberts said the Xi5, also the first box from Comcast to support video-over-WiFi, is targeting a connection/installation goal of two minutes “with a few simple keystrokes.”

The retail era for DOCSIS 3.1 modems and gateways is about to get underway.

Netgear’s first D3.1 product, the CM1000, is available for preorder on Amazon ahead of an expected Dec. 13 release date. It’s selling for $179.99 – about $50 more than the price for the Netgear CM700, a DOCSIS 3.0 product that can bond up to 32 downstream channels and eight upstream channels.  

UPDATE: Netgear's listing of the CM1000 has disappeared from Amazon as of Thursday (Dec. 8). Netgear has been asked for a reason and if it's still on track to release the product on Dec. 13. 

UPDATE 2: Netgear responded via Twitter the afternoon of Dec. 8 that the listing on Amazon will return shortly: 

@thebauminator The team is aware of this. Pre-order page should be available within the next week.

— NETGEAR (@NETGEAR) December 8, 2016

Early estimates held that coming DOCSIS 3.1 devices would cost 30% to 50% more than their D3.0-only counterparts.

Like other early D3.1 modems, Netgear’s CM1000 is a hybrid in the sense that it can support DOCSIS 3.0 and DOCSIS 3.1-based signals. The D3.0 side supports a 32x8 channel configuration.

The CM1000 is a stand-alone modem with a single LAN port, so users will need to pair it with a router.

In January, Netgear’s CM1000 was among the initial batch of modems to obtain certification from CableLabs, which is required for retail distribution.  The Arris SurfBoard 8200, a DOCSIS 3.1 model tagged for retail, has also obtained the CableLabs stamp.

RELATED: Arris DOCSIS 3.1 Modem Cleared For Takeoff

Update: Arris said it will start to sell the SB8200 at retail later this month and will share more details soon. 

Notably, the Netgear listing on Amazon says that the CM1000 is certified by Comcast, touting a fast self-install activation, but adds that the model is not yet certified for Charter Communications and  Time Warner Cable networks (Charter now owns TWC).

Netgear's new wares are entering the mix as Comcast and other cable operators look to expand trials and deployments of DOCSIS 3.1 and residential broadband tiers that deliver downstream bursts of 1 Gbps. 

Netgear and Arris are battling it out at retail with other DOCSIS vendors including TP-Link, Linksys and Zoom Telephonics, which is using the Motorola brand and has D3.1 models on its roadmap.

RELATED: Linksys Reenters Cable Modem Retail 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 DOCSIS CPE market.

RELATED: Retail Modem Market Small, but Active (subscription required)

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.”