While most SDV implementations gravitate toward service groups of 500 set-tops, operators can squeeze more bandwidth optimization out of their SDV deployments as they reduce those service groups to 250 set-tops or less, Sood explains.

    Although Cox has already selected three markets for SDV, the "vast majority" of the MSO's systems don't require the technology in the near-term, Kelso says. But, "you'll see switched all over the place" in about three to four years, he predicts.

    That will be good news for edge QAM suppliers and SDV system vendors like Motorola, Arris International Inc. (Nasdaq: ARRS - message board), C-COR Corp. (Nasdaq: CCBL - message board), and Tandberg Television .

    The deal with Cox did help BigBand on Wall Street, as shares rose $0.81 (9.03%) to $9.88 in midday trading Wednesday.

    BigBand shares have been on a rollercoaster ride of late, declining steeply after the company missed some second-quarter targets, coupled with investors who remain concerned that BigBand has so far been unable to secure a spot in some early SDV tech trials at Comcast Corp. (Nasdaq: CMCSA, CMCSK). (See BigBand's After-Hours Free Fall , Comcast Taps Arris for Edge QAM Initiative , and Comcast Puts SDV Vendors to the Test.)

    Despite those concerns, BigBand has clearly taken the lead on SDV deployments with cable operators. Not counting new installments with Cox, BigBand says cable systems with 6.5 million homes passed have deployed its SDV technology.