Charter Taps ARRIS for WorldBox 2.0

Oct. 12, 2016
ARRIS (NASDAQ:ARRS) and Charter Communications (NASDAQ:CHTR) announced plans for ARRIS to participate in the ...

ARRIS (NASDAQ:ARRS) and Charter Communications (NASDAQ:CHTR) announced plans for ARRIS to participate in the development of WorldBox 2.0, Charter's next-generation video platform to be deployed on traditional TV sets acrossthe MSO's footprint. ARRIS and Charter also recently entered into a warrant agreement, providing Charter with the opportunity to acquire ordinary shares of ARRIS based on specific sales targets of ARRIS equipment to Charter in 2016, 2017 and 2018.

WorldBox is a hybrid IP/QAM video platform designed to enable traditional and cloud-based user interfaces, content, and new video features. Worldbox 2.0 expands on Charter's current downloadable conditional access (DCAS) capabilities and is intended to enhance legacy hardware-based CAS systems across Charter's new footprint, and also to allow for faster and more cost-effective deployment. The upgrade is based on the built-in security processing capabilities now available in generic chipsets. Worldbox 2.0 also adds improved graphics capabilities and processing power.

ARRIS and Charter's new warrant agreement builds on the two companies' long-standing relationship. The companies recently joined forces to acquire ActiveVideo, the cloud-based technology platform that enables Charter's cloud-based Spectrum Guide on prior generation set-top boxes to Charter subscribers today. ARRIS made a similar warrant agreement with Comcast (NASDAQ:CMCSA) in July.

"While Charter is focused on providing a secure video product on all devices, WorldBox 2.0 provides the same advanced video experience consumers are demanding on traditional television sets, and gives Charter the flexibility to deploy a single platform across our entire expanded network," said Jim Blackley, Charter EVP of engineering and IT. "Our ongoing work with ARRIS – in developing this platform, including the downloadable security component – and the establishment of the warrant program, speaks to the strength of our long-standing relationship and the value of ARRIS's expertise in large-scale, next-generation deployments."

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