Technology | Media | Telecommunications

Tuesday, October 14, 2008

Growth for Digital Home Broadband Gateways

The advent of high speed broadband connections and changes in requirements have led to improved connectivity as informed consumers demand real -- globally competitive -- high-speed Internet access.

Basic broadband modem devices currently account for more than half of the market, but they will soon become obsolete as full-fledged multimedia digital home gateways with high throughput take over the market.

A new ABI Research market study focused on residential gateways forecasts that home networking consumer premises equipment (CPE) and aggregation devices will deliver at least $1.8 billion in annual revenues by the end of 2013.

ABI Research industry analyst Serene Fong observes that, "Broadband households have a high propensity to adopt home networks and broadband subscribers will be the primary candidates for gateway products designed to distribute Internet bandwidth and multimedia applications."

The only question that equipment vendors have is about the speed of the broadband market's growth, and the adoption of sophisticated equipment.

Fong adds that, "To date, modem and router shipments are still leading the charge, but vendors are also actively seeking multimedia solutions to set themselves apart from their competitors."

ABI Research also notes that the role of the home router and residential gateway will grow over time to support various services and ultimately become the main interface between carriers and end-users.

To distribute media with guaranteed QoS on wireless and existing fixed media is not a simple feat. To keep abreast of growing consumer expectations, manufacturers had better ensure that their products offer sufficient future-proofing, reliability and user-friendliness, as well as a reasonable price tag.