CommScope spins out home networks business

April 12, 2021 // By Nick Flaherty
CommScope spins out its home networks business
Commscope, which acquired Arris cable modem and Pace set top box businesses, is spinning out its home networks business to focus on its broadband infrastructure wireless business

Commscope, the spin out of General Instruments, is to spin out its home networks business as part of a restructuring. The company acquired Arris Networks, including the UK’s Pace Micro Technology set top box business, back in 2019. The company supplies the set top boxes for the UK’s FreeSat satellite TV service, for example and makes boxes for Liberty Global for TV networks across Europe.

The planned separation of CommScope’s Home Networks business and operating expense reduction represent early steps in the restructuring which the company calls ‘CommScope NEXT’ and highlights the challenge of manufacturing consumer equipment.

The spin-off will form a new and independent publicly traded company by the end of the first quarter of 2022.

“Since I joined CommScope last October, the Board and management team have been undertaking a comprehensive review of our portfolio of assets and how each contributes to our long-term growth strategy,” said Chuck Treadway, president and chief executive officer.

“As we proceeded with this review, it became clear that the Home Networks business’ distinct strategy, growth characteristics, investment requirements and returns on invested capital are not aligned with the rest of our portfolio. We believe that Home Networks will be better positioned to deliver superior home and consumer-oriented products as an independent company,” he said.

He expects additional cost savings across the company, which includes the Andrews antenna business, to make up for the lost income from the consumer business.  

“We remain excited about CommScope’s potential, and with the core elements of our strategy intact, we are confident in our ability to deliver innovative solutions for network convergence for customers around the world,” he said.

The company says the planned spin-off will allow Home Networks to focus on innovation and pursue strategic market opportunities such as the smart home, accelerating growth and unlocking greater value for their customers, which would imply a merger with another supplier.


A low power 4K set top box made by Commscope for Liberty Global in Poland

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