Nokia, Ericsson, others could enter the set-top box market

The once fast-growing pay-TV set-top market is changing fast. The emergence of cloud-based video distribution systems and the slowing pay-TV market are beginning to take their toll on the businesses of industry leaders such as Arris/Pace, Cisco, Technicolor, EchoStar and others.

However, one analyst believes that the situation could open the door to new competitors to enter the set-top box market. "It's also not impossible that we could see companies that don't currently offer STBs but do offer cloud TV solutions, such as Alcatel-Lucent, Nokia or Ericsson, buy into the space to help them compete with the likes of Arris and Cisco, which can offer both," said Daniel Simmons, director and head of connected home for IHS Technology.

For more on the state of the set-top box market, and where it may be headed, check out this new FierceCable special report.