Broadband Market Shares, Strategies, and Forecasts, Worldwide, 2010-2016

Table of Contents

Broadband Executive Summary

Broadband Growth Executive Summary ES-1

Broadband Market Driving Forces ES-1

Broadband Ethernet Routing Market Shares ES-5

Broadband Market Opportunity ES-7

CDMA Market Shares ES-8

Broadband 3G Cell Phone Market Forecasts ES-10

Broadband Strategies ES-11

Cisco Aims at the Market Transition in the Data Center ES-11

Cisco Competitive Landscape ES-13

Qualcomm ES-14

Broadcom ES-14

Broadband Market Description And Market Dynamics

1. Broadband Growth Market Description and

Market Dynamics 1-1

1.1 Broadband Communication 1-1

1.1.1 3G phones’ Expanded Memory 1-2

1.1.2 Apples AppStore Applications 1-2

1.1.3 Deployment Of 3G Networks 1-3

1.2 Wireless Backbone Capacity 1-3

1.2.1 Strict Net Neutrality Rules 1-4

1.2.2 US Federal Communications Commission:

Reallocation Of More Spectrum 1-4

1.2.3 US FCC's Broadband Status Report 1-5

1.3 IT, Collaboration, And Networking Requirements 1-6

1.3.1 Enterprise 1-6

1.3.2 Service Providers 1-7

1.3.3 Commercial Business Markets 1-8

1.3.4 Consumer Markets 1-8

1.4 IP-Based Networking 1-9

1.5 Broadband Market Transition 1-11

1.6 Multi-Service Provisioning Platform 1-12

1.6.1 Switching As A Network Topology 1-13

1.6.2 Broadband for Consumer Electronics 1-14

1.6.3 Wi-Fi In Mobile Devices 1-15

1.6.4 Multimedia Center 1-15

1.6.5 Coexistence and Interference 1-16

1.7 Component Size and Cost 1-17

1.8 Broadband Industry Environment 1-18

1.8.1 Communications Integrated Circuit Evolution

Brought By The Internet 1-22

1.8.2 Broadband Transmission Of Digital Information 1-22

1.9 Converged Networks 1-23

Broadband Market Shares And Market Forecasts

2. Broadband Growth Market Shares and Forecasts 2-1

2.1 Broadband Market Driving Forces 2-1

2.2 Broadband Ethernet Routing Market Shares 2-5

2.2.1 Cisco High End, Mid Range, and Low End Router Shipments 2-7

2.2.2 Broadband Ethernet Switching Market Shares 2-8

2.2.3 Cisco Broadband Advanced Technologies and

Other Market Shares 2-9

2.3 Broadband Market Opportunity 2-11

2.3.1 Broadband Ethernet Routing and Switching Market Forecasts 2-13

2.3.1 Cisco Strategic Vision In Network Infrastructure 2-19

2.3.2 Cisco Aims at the Market Transition in the Data Center 2-20

2.3.3 Cisco Competitive Landscape 2-22

2.4 CDMA technologies 2-23

2.4.1 Qualcomm CDMA Technologies 2-25

2.4.2 Qualcomm Revenues 2-25

2.4.3 Transition to 3G CDMA-Based Networks 2-28

2.4.4 Qualcomm Research And Development 2-28

2.4.5 Broadband 3G Cell Phone Market Forecasts 2-30

2.5 Ethernet Switch Fabric Market Shares 2-41

2.5.1 Packet Fabrics Market Shares 2-43

2.6 Packet Fabric ASIC Proprietary Market Shares 2-44

2.6.1 Broadcom 2-45

2.6.2 AMCC 2-45

2.6.3 Broadcom Switching 2-45

2.6.4 Broadcom Dune Networks Leads Merchant

Switch Fabric Market 2-46

2.6.5 Broadcom Dune Networks 2-46

2.6.6 Switch Fabric Market Forecasts 2-49

2.6.7 Data Center 2-49

2.6.8 Carrier and Service Provider 49

2.6.9 Enterprise 2-50

2.6.10 Home and Small Business 2-50

2.7 Enterprise Cloud Computing 2-50

2.7.1 Cisco in the Cloud 2-51

2.7.2 Cisco Aims at the Market Transition in the Data Center 2-52

2.7.3 Cisco Network Application Architectural Approach 2-55

2.7.4 Cisco Innovative Organizational Cross

Functional Area Team Structure 2-55

2.8 Broadband Regional Segment Analysis 2-56

2.8.1 Cisco United States and Canada 2-57

2.8.2 Cisco European Markets 2-57

2.8.3 Cisco Emerging Markets 2-58

2.8.4 Cisco Asia Pacific 2-58

2.8.5 Cisco Japan 2-59

2.8.6 Qualcomm Regional Analysis 2-62

Broadband Product Description

3. Broadband Product Description 3-1

3.1 Cisco 3-1

3.1.1 Cisco Strategy and Focus Areas 3-1

3.1.2 Cisco Nexus 3-3

3.1.3 Cisco ASR 1000 Series Aggregation Services Routers 3-5

3.1.4 Cisco ASR1002 Router Product Architecture 3-13

3.1.5 Cisco ASR 1000 Series Route Processor LAN Ports 3-14

3.1.6 Cisco Services for the Enterprise WAN Edge 3-14

3.1.7 Cisco ASR 1000 Series WAN Performance 3-14

3.1.8 Cisco Business Challenges: China 3-15

3.1.9 Cisco System Network Mission Critical 3-16

3.1.10 Cisco Broadband System Resilience And Up Time 3-18

3.1.11 Cisco Products and Services 3-25

3.1.12 Cisco Network Architectures Robust 3-26

3.1.13 Cisco Aims at the Market Transition in the Data Center 3-28

3.1.14 Cisco Competitive Landscape 3-30

3.1.15 Cisco Market Adjacencies 3-30

3.1.16 Cisco Network Application Architectural Approach 3-31

3.1.17 Cisco Innovative Organizational Cross

Functional Area Team Structure 3-32

3.1.18 Cisco Routing Product Categories: 3-32

3.1.19 Cisco Switching Product Categories: 3-33

3.1.20 Cisco Application Networking Services Product Categories: 3-35

3.1.21 Cisco Home Networking Product Categories: 3-35

3.1.22 Cisco Security Product Categories: 3-36

3.1.23 Cisco Unified Communications Product Categories: 3-37

3.1.24 Cisco Video Systems Product Categories: 3-39

3.1.25 Cisco Wireless Technology Product Categories: 3-39

3.1.26 Cisco Other Product Categories: 3-40

3.1.27 Cisco Services: 3-41

3.2 Qualcomm 3-41

3.2.1 Qualcomm Segments 3-42

3.2.2 QCT Supplier of CDMA-Based Integrated Circuits 3-45

3.2.3 Qualcomm Core Baseband CDMA Modem

Functionality Infrastructure Equipment 3-46

3.2.4 Qualcomm CDMA Technology Supports

Design And Introduction Of CDMA-Based Products 3-48

3.2.5 Qualcomm Sees Strong Pace Consumer Demand

For Advanced 3G devices 3-48

3.2.6 Qualcomm More Wireless Spectrum 3-52

3.2.7 Qualcomm Smartbook 3-54

3.3 Broadcom 3-58

3.3.1 Broadcom 24-Port 10-GbE and 4-Port Multilayer

Gigabit Ethernet Switch 3-60

3.3.2 Broadcom Switch Fabric BCM56720 3-61

3.3.3 Broadcom Switch Fabric BCM56720 3-66

3.3.4 Broadcom BCM56820 - 24-Port 10-GbE and 4-Port

Multilayer Gigabit Ethernet Switch 24-Port 10-GbE and

4-Port Multilayer Gigabit Ethernet Switch 3-70

3.3.5 Broadcom Ethernet Switch Fabrics 3-76

3.3.6 Broadcom BCM88130 High Performance Switch Fabric 3-78

3.3.7 Broadcom 4-Port 10-GbE/HiGig+™ Multilayer Switch 3-88

3.3.8 BroadcomBCM56511 Integrates Sophisticated

Advanced L3 switching 3-93

3.3.9 BroadcomContentAware Classification 3-94

3.3.10 BroadcomBCM56511 Built-In Security Functions 3-94

3.3.11 Broadcom BCM56511 Integrates Sophisticated

Metering, Statistics, And Traffic Management 3-94

3.3.12 Broadcom / Dune Networks 3-95

3.3.13 Broadcom / Dune 3-96

3.3.14 Broadcom Diverse Portfolio Of Products 3-97

3.3.15 Broadcom Metropolitan and Wide Area Networking 3-102

Broadband Technology

4. Broadband Strategy, Technology, And Industry Specific Applications 4-1

4.1 Broadcom Nano Level CMOS Integrated Circuits 4-1

4.2 Upgrading the HD Video Experience with a MoCA-

Based Home Network 4-1

4.2.1 Evolution Of Home Networks 4-2

4.3 Multimedia over Coax Alliance (MoCA) 4-3

4.4 Ethernet Cost Attractiveness 4-6

4.5 Qualcomm FLO TV 4-14

4.6 Cisco Collaborative Network Architectures 4-16

4.7 Wireless Devices Safety Risks 4-17

4.8 CTIA Wireless Industry Group Issues 4-17

4.8.1 Spectrum Challenges Addressed 4-18

Broadband Company Profiles

5. Broadband Growth Company Profiles 5-1

5.1 Broadcom 5-1

5.1.1 Broadcom Semiconductor Technology Innovation 5-1

5.1.2 Broadcom Intellectual Property (IP) 5-3

5.1.3 Broadcom Revenue 5-3

5.1.4 Broadcom Regional Product Revenue 5-4

5.1.5 Broadcom Revenue 5-8

5.1.6 Broadcom Broadband Modems and Residential Gateways 5-14

5.1.7 Broadcom Customers 5-16

5.1.8 Broadcom Digital Cable, Direct Broadcast Satellite

and IP Set-Top Boxes 5-21

5.1.9 Broadcom Silicon Platform For High-End Interactive

Set-Top Boxes, Supporting The Simultaneous Viewing

Of Television Programming With Internet Content 5-22

5.1.10 Broadcom DBS Broadcast Solutions 5-22

5.1.11 Broadcom Broadband Satellite Market 5-23

5.1.12 Broadcom IP Set-Top Box Solutions 5-23

5.1.13 Broadcom Digital Television 5-24

5.1.14 Broadcom DTV Business Of Advanced Micro Devices 5-24

5.1.15 Broadcom High Definition Blu-ray Disc Players 5-25

5.1.16 Broadcom Local Area Networking 5-25

5.1.17 Broadcom Broadband Processors 5-26

5.1.18 Broadcom / Dune Networks 5-28

5.1.19 Dune Switch Fabric Chipsets 5-28

5.2 Cisco 5-30

5.2.1 Cisco Revenue 5-32

5.2.2 Cisco Revenue 5-39

5.2.3 Cisco Net sales Regional Analysis: 5-41

5.2.4 Cisco United States and Canada Revenue 5-44

5.2.5 Cisco European Markets Revenue 5-44

5.2.6 Cisco Emerging Markets Revenue 5-45

5.2.7 Cisco Asia Pacific Revenue 5-45

5.2.8 Cisco Japanese Revenue 5-46

5.2.9 Cisco Routers Revenue 5-47

5.2.10 Cisco Switches Revenue 5-47

5.2.11 Cisco Advanced Technologies Revenue 5-49

5.2.12 Cisco Other Product Revenue 5-51

5.2.13 Cisco Net Service Revenue 5-51

5.3 Qualcomm 5-53

5.3.1 Qualcomm Revenues 5-53

5.3.2 Qualcomm First Quarter Fiscal 2010 Revenue 5-54

5.3.3 Qualcomm Samsung Renewal 5-56

5.3.4 Nokia And Samsung Large Qualcomm Customers 5-57

5.3.5 Qualcomm Discussion 5-67

5.3.6 GlobalFoundries And Qualcomm 5-69

5.4 GlobalFoundries 5-71

List of Tables and Figures

Broadband Executive Summary

Table ES-1 ES-2

Broadband Market Driving Forces

Table ES-1 (Continued) ES-3

Broadband Market Driving Forces

Table ES-1 (Continued) ES-4

Broadband Market Driving Forces

Figure ES-2 ES-6

Router Market Shares, Worldwide, Dollars, 2009

Figure ES-3 ES-7

Broadband Market Transitions and Opportunities

Figure ES-4 ES-8

Ethernet Routing and Switching Market Forecasts, Dollars,

Worldwide, 2010-2016

Figure ES-5 ES-9

CDMA 3G Cell Phone IC Components

Shipments Market Shares, Worldwide, Dollars, 2009

Table ES-6 ES-10

3G Cellphone IC Components Market Forecasts, Dollars,

Worldwide, 2010-2016

Broadband Market Description And Market Dynamics

Table 1-1 1-19

Data-Intensive Computing And Communications

Applications and Platforms

Table 1-2 1-21

Data-Intensive Computing And Communications Devices

Broadband Market Shares and Market Forecasts

Table 2-1 2-2

Broadband Market Driving Forces

Table 2-1 (Continued) 2-3

Broadband Market Driving Forces

Table 2-1 (Continued) 2-4

Broadband Market Driving Forces

Figure 2-2 2-6

Router Market Shares, Worldwide, Dollars, 2009

Figure 2-3 2-7

Cisco High End, Mid Range, and Low End Router Shipments,

Worldwide, Market Quarterly Shipments, Dollars, Worldwide, 2009

Figure 2-4 2-8

Cisco High End, Mid Range, and Low End Switch S

hipments, Worldwide, Market Quarterly Shipments, Dollars, 2009

Table 2-5 2-10

Cisco Video, Security, Technology, and Other Shipments, Worldwide,

Market Segments, Dollars, 2009

Figure 2-6 2-11

Broadband Market Transitions and Opportunities

Figure 2-7 2-12

Cisco Routing and Switching Leadership

Figure 2-8 2-13

Ethernet Routing and Switching Market Forecasts, Dollars,

Worldwide, 2010-2016

Figure 2-9 2-14

Ethernet Routing and Switching Market Forecasts, Dollars,

Worldwide, 2010-2016

Figure 2-10 2-15

Ethernet Routing Market Forecasts, Dollars, Worldwide, 2010-2016

Figure 2-11 2-16

Ethernet Routing Market Forecasts, Units, Worldwide, 2010-2016

Figure 2-12 2-17

Ethernet Switching Market Forecasts, Dollars, Worldwide, 2010-2016

Figure 2-13 2-18

Ethernet Switching Market Forecasts, Ports, Worldwide,

2010-2016

Figure 2-14 2-24

CDMA 3G Cell Phone IC Components

Shipments Market Shares, Worldwide, Dollars, 2009

Figure 2-15 2-29

Regional CDMA-Based Device Shipments

Table 2-16 2-30

3G Cellphone IC Components Market Forecasts, Dollars,

Worldwide, 2010-2016

Table 2-17 2-31

3G Cellphone IC Components Market Forecasts, Dollars,

Worldwide, 2010-2016

Figure 2-18 2-32

3G Cellphone IC Licenses, # Units in Millions Market Forecasts,

Worldwide, 2010-2016

Figure 2-19 2-33

Installed Base 3G Handsets Market Forecasts,

Worldwide, Dollars, 2010-2016

Figure 2-20 2-34

Number of Cell Phone Users Market Forecasts,

Worldwide, Dollars, 2010-2016

Figure 2-21 2-35

3G Phone % Penetration Cell Phones Segment

Market Forecasts, Worldwide, 2010-2016

Figure 2-22 2-36

% 3G Phone Units Replaced Per Year, Worldwide,

Market Forecasts 2010-2016

Figure 2-23 2-37

# 3G Phone New Units Market Forecasts, Worldwide, 2010-2016

Figure 2-24 2-38

# 3G Phones Replaced per Year, Market Forecasts, Units,

Worldwide, 2010-2016

Figure 2-25 2-39

# 3G Phones Replaced per Year, Market Forecasts, Units,

Worldwide, 2010-2016

Figure 2-26 2-40

Average Price 3G Phones per Year, Market Forecasts,

Worldwide, 2010-2016

Figure 2-27 2-41

Ethernet Switch Fabric IC Shipments Market Shares,

Worldwide, Dollars, First Three Quarters 2009

Table 2-28 2-42

Ethernet Switch Fabric IC Shipments

Market Shares, Worldwide, Dollars, First Three Quarters 2009

Table 2-29 2-43

Packet Switch Fabric IC Shipments

Market Shares, Worldwide, Dollars, First Three Quarters 2009

Table 2-30 2-44

Packet Switch Fabric IC Shipments

Market Shares, Worldwide, Dollars, First Three Quarters 2009

Figure 2-31 2-47

Switch Fabric Market Forecasts, Worldwide, Dollars,

2009-2015

Table 2-32 2-48

Switch Fabric Market Forecasts, Worldwide, Dollars,

2009-2015

Figure 2-33 2-54

Cisco Market Adjacencies

Table 2-34 2-56

Cisco Net Product Sales by Theater

Figure 2-35 2-59

Cisco Quarter 2 Fiscal Year 2010 Revenue By Geography

Figure 2-36 2-60

Cisco Regional Market Segments, Dollars, 2009

Table 2-37 2-61

Cisco Regional Market Segments, Dollars, 2009

Figure 2-38 2-62

Regional CDMA-Based Device Shipments

Broadband Product Description

Figure 3-1 3-4

Cisco Nexus 7000 Series Switches

Table 3-2 3-5

Cisco ASR 1000 Series Aggregation Services Routers

Table 3-3 3-6

Cisco ASR 1000 Series Route Processor Embedded Features

Table 3-3 (Continued) 3-7

Cisco ASR 1000 Series Route Processor Embedded Features

Figure 3-4 3-8

Cisco ASR-1000 Series Route Processor 2 (RP2)

Table 3-5 3-9

Cisco ASR-1000 Series Route Processor Features

Table 3-5 (Continued) 3-10

Cisco ASR-1000 Series Route Processor Features

Table 3-6 3-11

Cisco IOS XE Software Functions

Table 3-6 (Continued) 3-12

Cisco IOS XE Software Functions

Table 3-6 (Continued) 3-13

Cisco IOS XE Software Functions

Table 3-7 3-16

China Telecom Billing Support System (BSS)

Figure 3-8 3-19

Cisco Enterprise Routing and Switching Portfolio

Figure 3-9 3-20

Cisco Service Provider Routing and Switching Portfolio

Figure 3-10 3-21

Cisco Emerging Technologies Portfolio

Figure 3-11 3-22

Cisco Consumer Portfolio

Figure 3-12 3-23

Cisco Services Delivery Capabilities

Figure 3-13 3-24

Cisco Telepresence

Table 3-14 3-27

Cisco Market Adjacencies Related To Core Routing And Switching

Table 3-15 3-42

Qualcomm Segments

Table 3-15 (Continued) 3-43

Qualcomm Segments

Table 3-15 (Continued) 3-44

Qualcomm Segments

Table 3-16 3-49

Qualcomm Demand Factors For Advanced 3G Wireless Devices

Table 3-17 3-51

Qualcomm Evolution of CDMA Functions

Figure 3-18 3-55

Qualcomm Smartbook Netbook

Figure 3-19 3-56

Qualcomm Lenovo Smartbook Netbook

Figure 3-20 3-61

Broadcom Switch Fabric Architecture for ACTA,

Access, and Embedded Applications

Figure 3-21 3-61

Broadcom Switch Fabric BCM56720 Features

Figure 3-22 3-61

Broadcom Switch Fabric BCM56720 Functions

Table 3-23 3-64

Broadcom Switch Fabric BCM56720 Benefits

Table 3-24 3-65

Broadcom Switch Fabric BCM56720 Benefits

Figure 3-25 3-67

Broadcom Multiport, Multi Layer Ethernet Switching

Figure 3-26 3-68

Broadcom Enterprise Data Center Fixed Stackable Applications

Figure 3-27 3-69

Broadcom Access, ATCA, and Embedded Applications

Table 3-28 3-71

Broadcom Multiport Multilayer Ethernet Switching Functions

Table 3-29 3-72

Multiport Multilayer Ethernet Switching ContentAware™

Engine Functions

Table 3-30 3-73

Broadcom Switch Fabric BCM56720 Tunnel Support

Table 3-31 3-74

Broadcom Switch Fabric BCM56720 Service Aware Flow Control

Figure 3-32 3-75

Broadcom Multiport Multilayer Ethernet Switching Fabric

Table 3-33 3-76

Broadcom Ethernet Switch Fabrics

Table 3-34 3-77

Broadcom Switch Fabrics

Table 3-35 3-79

Broadcom BCM88130 System High-Performance

Packet Switch Fabric Functions

Table 3-35 (Continued) 3-80

Broadcom BCM88130 System High-Performance

Packet Switch Fabric Functions

Table 3-36 3-81

Broadcom Switch Fabric Engines Provide Line-Card Future-Proofing

Table 3-37 3-82

Streaming Multicast/Broadcast Services for IPTV Efficient

Multicast Capabilities

Table 3-38 3-83

Broadcom SBX fabric Applicable To The Next-Generation Carrier

Table 3-39 3-85

Broadcom BCM88130 Systems Operating Characteristics

Figure 3-40 3-86

Broadcom BCM 130 System Fabric Diagram

Figure 3-41 3-87

Broadcom BCM 130 System Line Cards and Fabric Cards

Table 3-42 3-89

Broadcom Four-Port 10-GbE/HiGig+ Multilayer Switch Features

Table 3-43 3-90

Broadcom Four-Port 10-GbE/HiGig+ Multilayer Switch Functions

Table 3-44 3-92

Broadcom Switch Fabric Enterprise Features

Table 3-45 3-93

Broadcom Switch Fabric Enterprise Applications

Broadband Technology

Figure 4-1 4-7

Network Service Platforms

Figure 4-2 4-8

Data Flow Through One Line Card to the System Switch Fabric Card

Figure 4-3 4-9

10G Backplane with Switch Fabric

Figure 4-4 4-10

Backplane Interface on Line Card

Figure 4-5 4-11

Backplane Interface on Switch Fabric Card

Table 4-6 4-13

Switch Fabric Technology Foundations:

Figure 4-7 4-16

Cisco Collaborative Network Architectures

Broadband Company Profiles

Figure 5-1 5-1

Broadcom

Figure 5-2 5-2

Broadcom Vertical Integration

Figure 5-3 5-11

Broadcom Global Presence

Figure 5-4 5-12

Broadcom Target Markets

Figure 5-5 5-13

Broadcom Diversified Revenue Distribution

Figure 5-6 5-16

Broadcom COmmunications Overview

Figure 5-7 5-17

Broadcom Customer Base of Industry Leaders

Figure 5-8 5-18

Broadcom Enterprise Networking Overview

Figure 5-9 5-19

Broadcom Mobile Platforms Overview

Figure 5-10 5-20

Broadcom Wireless Connectivity Overview

Table 5-11 5-31

Cisco Target Markets

Figure 5-12 5-36

Cisco Focus

Figure 5-13 5-37

Cisco Strategy and Execution

Figure 5-14 5-38

Cisco Enterprise, Commercial, and Small Business Opportunity

Figure 5-15 5-39

Cisco IT Strategic Partner Positioning

Table 5-16 5-49

Cisco Advanced Technologies Sales Decreases

Table 5-17 5-50

Cisco Advanced Technologies Sales Decrease Products Impacted

Figure 5-18 5-55

Qualcomm Revenues

Table 5-19 5-58

Qualcomm Business Segment Highlights

Table 5-19 (Continued) 5-59

Qualcomm Business Segment Highlights

Table 5-20 5-60

Qualcomm Business Initiatives

Figure 5-21 5-61

Qualcomm MSM RISC Chipset Shipments

Figure 5-22 5-62

CDMA Based Device Shipments

Figure 5-23 5-63

Qualcomm CDMA Based Device Regional Shipments

Figure 5-24 5-64

Qualcomm CDMA Based Device Shipment Average Sales Price ASP

Table 5-25 5-65

Qualcomm Unique Patent Position

Table 5-26 5-66

Qualcomm Strategic Initiatives