Distributed CMTS device for a HFC CATV network serving multiple neighborhoods by multiple individual cables, in which at least some and often all of the QAM modulators that provide data for the individual cables are remote QAM modulators ideally located at the fiber nodes. A CCAP set of IP/on-demand data is transmitted to the nodes using an optical fiber, often using digital protocols such as Ethernet protocols. Optionally a basic set of legacy CATV QAM data, transmitted using RF waveforms transposed to optical frequencies, may also be transmitted to the nodes using either the same or different optical fiber. The nodes extract the data specific to each neighborhood, and inject this data into unused cable QAM channels along with any optional legacy CATV QAM waveforms as desired, thus achieving improved data transmission rates through finer granularity. A computerized “virtual shelf” control system for this system is also disclosed.