Profile: Arris Group, Inc. (ARRS.O)

ARRIS Group, Inc. (ARRIS) is a global communications technology company specializing in integrated broadband network solutions that include products, systems and software for content and operations management, and professional services. It develops, manufactures and supplies cable telephony, video and high-speed data equipment. In addition, it is a supplier of infrastructure products used by cable system operators to build-out and maintain Hybrid Fiber-Coaxial (HFC) networks. It provides products and equipments to cable system operators and multiple systems operators (MSOs). Its products allow MSOs and other broadband service providers to deliver a range of integrated voice, video and high-speed data services to their subscribers. It operates in three segments: Broadband Communications Systems (BCS), Access, Transport and Supplies (ATS), Media and Communications Systems (MCS).

Broadband Communication Systems

The heart of a Voice over Internet protocol (VOIP) headend is a cable modem termination system (CMTS). A CMTS, along with a call agent, a gateway, and provisioning systems, provides the ability to integrate the Public-Switched Telephone Network (PSTN), and high-speed data services over a HFC network. The CMTS provides the software and hardware to allow Internet protocol (IP) traffic from the Internet, or traffic used in VoIP telephony, to be converted for use on HFC networks. The CMTS is also responsible for initializing and monitoring all cable modems and embedded multimedia terminal adapters (EMTAs) connected to the HFC network. It provides two products, the C4 CMTS and the C3 CMTS, used in the cable operator’s headend that provide VoIP and high-speed data services to residential or business subscribers. During the year ended December 31, 2008 the Company introduced 16D Cable Access Module (CAM) and the RouterControl Module (RCM) for the C4 CMTS.

Subscriber premises equipment includes DOCSIS certified cable modems for high-speed data applications, as well as Euro-DOCSIS certified versions and PacketCabletm Certified EMTAs for VoIP applications in both DOCSIS and Euro-DOCSIS networks. The PacketCabletm solution builds on DOCSIS and its quality of service enhancements to support lifeline telephony deployed over HFC networks. Its Touchstone product line provides carrier-grade performance to enable operators to provide all data, telephony and video services on the same network using common equipment. The Touchstone product line consists of the Touchstone CM550, WBM650, and WBM 750 series of cable modems and the Touchstone TM402, TM502, TM602 and TM702 series of telephony modems. During 2008, the Company introduced the WBM750 DOCSIS Wideband Cable Modem and the TM702 DOCSIS Wideband Multimedia Terminal Adapter.

The Company markets its Video / IP headend equipment as the D5 Universal Edge QAM. The D5 Universal Edge QAM converts digital video and IP data into radio frequency signals that can be transmitted on a cable service provider’s HFC plant. The D5 Universal Edge QAM is compatible with DOCSIS cable modems as well as MPEG-2 and MPEG-4 set top boxes. The D5 Universal Edge QAM is ideal for service providers deploying video on demand and switched digital video (SDV) services where many unicast channels are required. The D5tm Universal Edge QAM is also forward compatible with M-CMTS standards being developed by CableLabs. It offers a number of constant bit rate (CBR) voice over cable products. During 2008, it expanded the capacity of the D5 form 48 ports to 72 ports.

Access Transport and Supplies

The Company offers product lines for all three components in a range of bandwidths, up to and including one gigahertz capability, as well as coarse wave division multiplexing (CWDM) and denser wave division multiplexing (DWDM), which provide more capacity per subscriber over existing infrastructures or provide capacity for new networks. It offers a range of managed and scalable headend and hub equipment for domestic and international applications. The Company’s node series allows network operators to have a pay-as-they-grow approach in deploying their infrastructure, minimizing capital expenditures while maximizing network service availability and performance. The radio frequency products transmit information between the optical nodes and subscribers. It offers a range of products that are used by MSOs to build and maintain their cable plants.

Media and Communications Systems

The Company’s integrated, application-oriented Internet Protocol solutions are designed to enable network operators to deploy and manage on demand entertainment and information services. Its Unified Video Delivery Platform eliminates the need for multiple hardware and software management systems to deliver and manage video on demand (VOD), linear and demand-oriented advertising (AdVOD), network-based digital video recording (nPVR), and switched digital video (SDV) services. Also, this platform streams content and advertising to any device, whether mobile, personal computer, or standard, high definition and IP television, all from a single server.

The Company’s On Demand Management System lets network operators manage all aspects of video on demand, which include the system, the content, and the business from a single, integrated platform that gives real-time control and visibility to achieve maximum revenue. nABLE reduces manual intervention, simplifies operations, and reduces costs with one process to manage delivery of on demand services at corporate, regional, and local levels, all in real time and across different video on demand delivery systems. Using its Digital Program Insertion (DPI), network operators can reach both digital and analog customers from one platform.

The Company provides a unified operations support system (OSS) suite of products that allows customers to ensure high levels of service availability through offering visibility, analysis, and control to address their bandwidth management, network optimization and assurance, and automated workforce needs. Customers can enhance and improve business processes with its Assurance applications (ServAssure) by reducing time to repair outages, minimizing truck rolls, and automating management of revenue-generating services. It provides the tools for cable operators to have a 360 degree, real-time view of their networks.

The Company’s suite of field service management tools combines browser-based business applications with real-time connectivity to the mobile workforce through wireless data connections and mobile computing devices. Its Mobility and Voice Call Continuity Application Servers provides a migration strategy for cable operators’ digital voice services, allowing them to evolve their existing landline voice service by degrees into a fully converged landline and wireless offering.

The Company competes with Ambit Microsystems, Aurora Networks, BigBand Networks, Cisco Systems, Inc., Commscope, Inc, Concurrent Computer Corporation, Ericsson, Harmonic, Inc., Motorola, Inc., SeaChange, Inc., Thomson and TVC Communications, Inc.