VDSL broadband gateways triple in 2Q07; broadband CPE hits $1.5B

Market Wire, October, 2007

Worldwide broadband CPE revenue is down slightly in 2Q07 from 1Q07 to $1.5 billion, while unit shipments are up a bit, says Infonetics Research in its latest "Broadband CPE and Subscribers" report.

The market continues to get a push from service providers seeking to entice customers to subscribe to a bundle of voice, data, and video services, and their demand for intelligent CPE to prioritize traffic coming into and out of the home.

These trends will push the market to grow from $5.56 billion in 2006 to $6.0 billion in 2010, despite ASP decreases.

"Growth in the broadband CPE market will be fueled by aggressive rollouts of cable and fiber networks, and a slightly less aggressive rollout of DSL services as mature markets become saturated. The increasing popularity of the 'connected home' -- with voice, data, video, gaming, and home monitoring services delivered over a broadband connection -- also will fuel growth," said Infonetics Research analyst Jeff Heynen.

Other report highlights:

--  Worldwide VDSL broadband gateway revenue and unit shipments roughly
    tripled in 2Q07 from 1Q07
--  Worldwide revenue for voice terminal adapters (VTAs) is up 15% in 2Q07
    and unit shipments are up 20%
--  Thomson leads the overall broadband CPE market with 11% revenue share
    in 2Q07, followed by Arris, Motorola, and Linksys
--  Actiontec continues to lead the digital home gateway market, helped in
    large part by its Verizon contract, but Thomson made significant gains in
    2Q07 and is close behind, followed by 2Wire
--  39% of all broadband CPE revenue comes from North America in 2Q07, 34%
    from EMEA, 18% from Asia Pacific, and 9% from CALA
    

Infonetics' broadband CPE report provides worldwide and regional forecasts, market size, and market share for DSL and cable CPE (modems, gateways, IADs, EMTAs), voice terminal adapters (VTAs), wired and wireless broadband routers, and residential gateways (broadband, multiservice, and digital home gateways).

Companies tracked include 2Wire, Actiontec, Arris, AVM, Buffalo, D-Link, Foxconn, Gemtek, Huawei, Linksys, Motorola, NETGEAR, SAFRAN, Scientific Atlanta, Siemens, SMC, Sumitomo, Thomson, Westell, Zhone (Paradyne), ZTE, ZyXEL, and others.

Download report highlights at www.info.infonetics.com . For sales, contact Larry Howard, vice president, at larry@infonetics.com or 1 (408) 583-3335.

Infonetics Research ( www.infonetics.com ) is the premier international market research and consulting firm specializing in data networking and telecom, providing a complete view of the market. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Press Contact Jeff Heynen Directing Analyst, Broadband & IPTV Infonetics Research 408-583-3359 Email Contact