Digital Home Gateway Shipments to More than Double by 2011

(Business News & Technology News, 13 Jun 2008)

by Stephen Las Marias, Editor


In line with the normal first quarter softness, worldwide broadband CPE market, which includes DSL and cable modems, residential gateways, voice terminal adapters, and voice CPE, sequentially dropped 9 percent to $1.1 billion, according to market research firm Infonetics Research. Despite this, revenues for some emerging segments in the market, such as cable broadband gateways and very high speed DSL (VDSL) broadband gateways, grew sequentially in double and triple percents. Overall, according to the latest report from the market analyst, digital home gateway shipments are forecast to eventually more than double between 2007 and 2011.

Mark Showalter, directing analyst for broadband networks at Infonetics Research, said in a statement that the softness in 1Q08 broadband CPE was in line with expectations except that standard cable modems had a larger decline in the quarter than usual. He added that service providers continue to use bundled CPE with advanced functionality to entice subscribers into long term contracts for broadband access.

According to the report, Thomson remained the worldwide leader in overall broadband CPE revenue despite a relatively tough quarter in the first half of the year, and Motorola is in second position.

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