Set-Top Box Deal, Another Set-Back For Motorola (MOT)

May 27, 2008 by Douglas A. McIntyre

The cable company will not be the sole provider of TV set-top boxes any longer. According to MarketWatch, "Industry officials said that by eliminating the set-top box, cable companies can simplify installation and reduce costs, while consumers can worry about one less component in their home theater systems."

Almost of of the boxes currently in use come from the old Scientific Atlanta division of Cisco (CSCO) and the former General Instruments operation now owned by Motorola (MOT). Cisco can take the potential reduction in its revenue. Motorola cannot.

While Motorola’s handset division lost $418 million last quarter on $3.3 billion in revenue, The company’s home and networks mobility operation made $153 million on revenue of $2.4 billion in the same period.

Some of that is going to go away.

Douglas A. McIntyre