Broadband market driving forces are articulated in part through the Internet on Ethernet networks and through wireless handsets. There are 4.7 billion wireless handset users. Cell phones have changed the world for ever, they are inexpensive, affordable to almost every person on earth. Broadband is bringing the Internet to cell phones.

Broadband brings a new world order, literally. The three broadband leaders Cisco, Qualcomm and Broadcom illustrate the market strategies that work in this new world order. The ability to embrace broadband and make it work has been elusive to virtually every other company. Broadband market driving forces are a result of being able to provide services aggregation on the Internet. Performance, service capabilities, reliability, and efficiencies are being achieved in a compact form factor.

Cisco has seen very strong growth in the last quarter of 2009, exceeding its own optimistic expectations. Cisco saw very strong balanced growth perspective in almost all major geographic and market segment categories. While most markets around the world are improved, Cisco was especially pleased with product booking growth in the U.S. in Q4 2009, up 17% y/y. Based on business momentum in prior economic recoveries, this recovery, from a capital spending perspective, is very strong and moving into the second phase.

Key market transitions are being made relative to virtualization and video networking productivity and growth in network loads. These markets are set to evolve even faster than anyone has thought. Cisco, Qualcomm and Broadcom are positioned to leverage broadband market growth. These market participants continue to be very aggressive in both internal innovation commitments, as well as partnership and acquisition strategies.

The Worldwide broadband markets are poised to achieve significant growth as broadband finds new uses and leverages existing ones. Costs of broadband devices are expected to decrease rapidly in response to the continuing economies of scale. Market strategies of the leaders Cisco, Qualcomm, and Broadcom are compelling in their innovation and flexibility?

Broadband network customers choose a Cisco platform to build critical BSS network because Cisco has the ability to deliver a total solution. There is a clear strategic roadmap that has been proven. Cisco is positioned as a valuable broadband technology partner. This is a crucial factor that contributes to Cisco big wins in the field, including the China Telecom deal. China Telecom selected Cisco over the competition China Telecom is committed in optimizing its WAN infrastructure to support growing business demands.

Cisco broadband networks are efficient. The China Telecom project implementation started in October 2008 and was completed within 3 months. Cisco strategy centers on the increasing role of intelligent networks, collaboration and Web 2.0 technologies. The United States, Europe, China, India, and emerging countries are target markets. The network is the platform. Broadband depends on network resource management and realignment.

Cisco strategy is to expand its share of customer information technology spending. The focus is on core networking capabilities. It has a continuing effort to expand into product markets similar, related, or adjacent to those in which it is active.

Broadband markets are big. Ethernet routing and switching at $22.6 billion in 2009 is anticipated to reach$52.5 billion by 2016. 3G cellphone IC components markets at $26.8 billion in 2009 are anticipated to reach $52.7 billion by 2016. These forecasts for broadband segments indicate the growth that comes from worldwide market penetration of broadband.

TABLE OF CONTENTS

1. Broadband Growth Market Description and Market Dynamics 

1.1   Broadband Communication

1.1.1    3G phones’ Expanded Memory 

1.1.2    Apples AppStore Applications

1.1.3    Deployment Of 3G Networks

1.2   Wireless Backbone Capacity 

1.2.1    Strict Net Neutrality Rules

1.2.2    US Federal Communications Commission: Reallocation Of More Spectrum

1.2.3    US FCC's Broadband Status Report

1.3   IT, Collaboration, And Networking Requirements

1.3.1    Enterprise 

1.3.2    Service Providers

1.3.3    Commercial Business Markets

1.3.4    Consumer Markets

1.4   IP-Based Networking 

1.5   Broadband Market Transition

1.6   Multi-Service Provisioning Platform

1.6.1    Switching As A Network Topology

1.6.2    Broadband for Consumer Electronics

1.6.3    Wi-Fi In Mobile Devices 

1.6.4    Multimedia Center

1.6.5    Coexistence and Interference

1.7   Component Size and Cost

1.8   Broadband Industry Environment

1.8.1    Communications Integrated Circuit Evolution Brought By The Internet

1.8.2    Broadband Transmission Of Digital Information

1.9   Converged Networks
 

2. Broadband Growth Market Shares and Forecasts

2.1   Broadband Market Driving Forces

2.2   Broadband Ethernet Routing Market Shares 

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

2.2.2    Broadband Ethernet Switching Market Shares 

2.2.3    Cisco Broadband Advanced Technologies and Other Market Shares

2.3   Broadband Market Opportunity 

2.3.1    Broadband Ethernet Routing and Switching Market Forecasts 

2.3.1    Cisco Strategic Vision In Network Infrastructure

2.3.2    Cisco Aims at the Market Transition in the Data Center

2.3.3    Cisco Competitive Landscape 

2.4   CDMA technologies

2.4.1    Qualcomm CDMA Technologies 

2.4.2    Qualcomm Revenues

2.4.3    Transition to 3G CDMA-Based Networks 

2.4.4    Qualcomm Research And Development

2.4.5    Broadband 3G Cell Phone Market Forecasts 

2.5   Ethernet Switch Fabric Market Shares 

2.5.1    Packet Fabrics Market Shares 

2.6   Packet Fabric ASIC Proprietary Market Shares 

2.6.1    Broadcom 

2.6.2    AMCC

2.6.3    Broadcom Switching 

2.6.4    Broadcom Dune Networks Leads Merchant Switch Fabric Market

2.6.5    Broadcom Dune Networks

2.6.6    Switch Fabric Market Forecasts

2.6.7    Data Center

2.6.8    Carrier and Service Provider

2.6.9    Enterprise 

2.7   Enterprise Cloud Computing

2.7.1    Cisco in the Cloud 

2.7.2    Cisco Aims at the Market Transition in the Data Center

2.7.3    Cisco Network Application Architectural Approach 

2.7.4    Cisco Innovative Organizational Cross Functional Area Team Structure 

2.8   Broadband Regional Segment Analysis

2.8.1    Cisco United States and Canada 

2.8.2    Cisco European Markets 

2.8.3    Cisco Emerging Markets 

2.8.4    Cisco Asia Pacific

2.8.5    Cisco Japan 

2.8.6    Qualcomm Regional Analysis 

3. Broadband Product Description

3.1   Cisco

3.1.1    Cisco Strategy and Focus Areas 

3.1.2    Cisco Nexus 

3.1.3    Cisco ASR 1000 Series Aggregation Services Routers

3.1.4    Cisco ASR1002 Router Product Architecture

3.1.5    Cisco ASR 1000 Series Route Processor LAN Ports 

3.1.6    Cisco Services for the Enterprise WAN Edge 

3.1.7    Cisco ASR 1000 Series WAN Performance 

3.1.8    Cisco Business Challenges: China 

3.1.9    Cisco System Network Mission Critical

3.1.10  Cisco Broadband System Resilience And Up Time 

3.1.11  Cisco Products and Services 

3.1.12  Cisco Network Architectures Robust

3.1.13  Cisco Aims at the Market Transition in the Data Center

3.1.14  Cisco Competitive Landscape

3.1.15  Cisco Market Adjacencies

3.1.16  Cisco Network Application Architectural Approach 

3.1.17  Cisco Innovative Organizational Cross Functional Area Team Structure 

3.1.18  Cisco Routing Product Categories

3.1.19  Cisco Switching Product Categories

3.1.20  Cisco Application Networking Services Product Categories

3.1.21  Cisco Home Networking Product Categories

3.1.22  Cisco Security Product Categories

3.1.23  Cisco Unified Communications Product Categories

3.1.24  Cisco Video Systems Product Categories

3.1.25  Cisco Wireless Technology Product Categories

3.1.26  Cisco Other Product Categories

3.1.27  Cisco Services

3.2   Qualcomm 

3.2.1    Qualcomm Segments 

3.2.2    QCT Supplier of CDMA-Based Integrated Circuits

3.2.3    Qualcomm Core Baseband CDMA Modem Functionality Infrastructure Equipment

3.2.4    Qualcomm CDMA Technology Supports Design And Introduction Of CDMA-Based Products 

3.2.5    Qualcomm Sees Strong Pace Consumer Demand For Advanced 3G devices 

3.2.6    Qualcomm More Wireless Spectrum 

3.2.7    Qualcomm Smartbook 

3.3   Broadcom  

3.3.1    Broadcom 24-Port 10-GbE and 4-Port Multilayer Gigabit Ethernet Switch

3.3.2    Broadcom Switch Fabric BCM56720 

3.3.3    Broadcom Switch Fabric BCM56720

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

3.3.5    Broadcom Ethernet Switch Fabrics

3.3.6    Broadcom BCM88130 High Performance Switch Fabric 

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

3.3.8    BroadcomBCM56511 Integrates Sophisticated Advanced L3 switching

3.3.9    BroadcomContentAware Classification 

3.3.10  BroadcomBCM56511 Built-In Security Functions

3.3.11  Broadcom BCM56511 Integrates Sophisticated Metering, Statistics, And Traffic Management

3.3.12  Broadcom / Dune Networks

3.3.13  Broadcom / Dune

3.3.14  Broadcom Diverse Portfolio Of Products 

3.3.15  Broadcom Metropolitan and Wide Area Networking 
 

4. Broadband Strategy, Technology, And Industry Specific Applications 

4.1   Broadcom Nano Level CMOS Integrated Circuits

4.2   Upgrading the HD Video Experience with a MoCA-Based Home Network

4.2.1    Evolution Of Home Networks

4.3   Multimedia over Coax Alliance (MoCA)

4.4   Ethernet Cost Attractiveness

4.5   Qualcomm FLO TV 

4.6   Cisco Collaborative Network Architectures

4.7   Wireless Devices Safety Risks 

4.8   CTIA Wireless Industry Group Issues 

4.8.1    Spectrum Challenges Addressed  
 

5. Broadband Growth Company Profiles 

5.1   Broadcom 

5.1.1    Broadcom Semiconductor Technology Innovation

5.1.2    Broadcom Intellectual Property (IP)

5.1.3    Broadcom Revenue

5.1.4    Broadcom Regional Product Revenue 

5.1.5    Broadcom Revenue 

5.1.6    Broadcom Broadband Modems and Residential Gateways

5.1.7    Broadcom Customers

5.1.8    Broadcom Digital Cable, Direct Broadcast Satellite and IP Set-Top Boxes 

5.1.9    Broadcom Silicon Platform For High-End Interactive Set-Top Boxes, Supporting The Simultaneous Viewing Of Television Programming With Internet Content

5.1.10  Broadcom DBS Broadcast Solutions 

5.1.11  Broadcom Broadband Satellite Market

5.1.12  Broadcom IP Set-Top Box Solutions

5.1.13  Broadcom Digital Television

5.1.14  Broadcom DTV Business Of Advanced Micro Devices

5.1.15  Broadcom High Definition Blu-ray Disc Players 

5.1.16  Broadcom Local Area Networking

5.1.17  Broadcom Broadband Processors

5.1.18  Broadcom / Dune Networks

5.1.19  Dune Switch Fabric Chipsets

5.2   Cisco 

5.2.1    Cisco Revenue 

5.2.2    Cisco Revenue

5.2.3    Cisco Net sales Regional Analysis

5.2.4    Cisco United States and Canada Revenue

5.2.5    Cisco European Markets Revenue

5.2.6    Cisco Emerging Markets Revenue

5.2.7    Cisco Asia Pacific Revenue 

5.2.8    Cisco Japanese Revenue 

5.2.9    Cisco Routers Revenue 

5.2.10  Cisco Switches Revenue 

5.2.11  Cisco Advanced Technologies Revenue 

5.2.12  Cisco Other Product Revenue 

5.2.13  Cisco Net Service Revenue

5.3   Qualcomm  

5.3.1    Qualcomm Revenues 

5.3.2    Qualcomm First Quarter Fiscal 2010 Revenue 

5.3.3    Qualcomm Samsung Renewal

5.3.4    Nokia And Samsung Large Qualcomm Customers

5.3.5    Qualcomm Discussion

5.3.6    GlobalFoundries And Qualcomm  

5.4   GlobalFoundries  

List of Tables and Figures

Table ES-1  ES-2

Broadband Market Driving Forces 

Table ES-1 ES-3

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 

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 Shipments, 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  

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 

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 3-6  3-11

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 3-36  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 

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 

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 5-20  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