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Industries Featured Article

Nokia Goes After Larger Presence in Cable Market with Gainspeed Acquisition

June 10, 2016


By Peter Bernstein - Senior Editor

In what might be considered a keen grasp of the obvious - since communications infrastructures in all corners of the world are truly converging and moving toward being all IP-based - service providers of all stripes are positioning to be able to offer quadruple play services and regardless of where they come from.  In short, distinguishing between the capabilities of transforming traditional telecom and cable providers based on service portfolios has become problematic to say the least.  This is particularly true as the roadmap for next generation communications architectures become almost identical.

The reason to bring this up is that for vendors of next generation communications infrastructure meeting the needs of the broad landscape of service providers is critical to their growth. Hence, filling in the missing puzzle pieces is a priority. It is more precisely these reasons that the announcement of Nokia’s (News - Alert) acquisition of Distributed Access Architecture (DAA) U.S.-based startup Gainspeed is noteworthy.  The addition of Gainspeed’s Virtual CCAP (Converged Cable Access Platform) product line will enable Nokia to expand its footprint in the crucial cable market.

For those not familiar with Gainspeed and its Virtual CCAP, it enables cable operators to increase the capacity of their existing HFC (Hybrid Fiber Coax) infrastructure and rapidly deploy new services, while reducing space and power requirements in the headend.

In making the announcement, Nokia noted that, “Gainspeed is widely regarded as the industry leader in DAA, which the cable industry has adopted as its next generation solution to address increasing capacity requirements.” They added that Gainspeed will become part of Nokia's Fixed Networks business group.

Federico Guillen, president of Nokia's Fixed Networks business group, said: "We are very excited to have Gainspeed, the technology leader in its field, joining us. Cable is one of the fastest growing areas in our fixed networks business, and we are committed to delivering a complete solution set to cable operators. Gainspeed's Virtual CCAP perfectly complements our leading fiber access solutions for cable MSOs."

With the Alcatel-Lucent (News - Alert) deal completed and the integration of those assets going well according to industry observers, the recent acquisitions by Nokia of key assets in growth markets, including the acquisition of Withings last month as a vehicle for entering the robust digital health care market, Nokia is clearly a hunter on the prowl.  And, with cable operators getting aggressive in updating their infrastructures to better compete against telecom companies, the acquisition of Gainspeed fills in a significant puzzle piece for Nokia in its quest to become a dominant solutions provider to the cable industry.    




Edited by Stefania Viscusi
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