Technology | Media | Telecommunications

Thursday, May 26, 2011

Broadband Gateway Revenues will Surpass $10 Billion

The residential gateway opportunity continues to rise in the broadband customer premises equipment (CPE) market. The upside is primarily due to telco service providers favoring gateways over modems, since they fulfill consumer demand and promise greater future revenue possibilities.

As a result of the latest market study by In-Stat, they now forecast that residential gateway revenues will surpass $10 billion in 2015.

"We define residential gateways as essentially any type of broadband modem that also includes routing and/or wireless access point capabilities, says Vahid Dejwakh, Analyst at In-Stat.

More and more different types of modems now also come with embedded Wi-Fi, which qualifies them as residential gateways, and many more telco service providers are supplying residential gateways instead of just DSL broadband modems.

This is not only because customers request gateway features, but also to present possible future service add-ons and to increase the broadband service provider's ability to manage their customer's home network.

Additional findings from the In-Stat market study include:

- Residential gateway shipments will overtake broadband modem shipments in 2014 as more and more devices incorporate Wi-Fi and routing capabilities.

- Worldwide fixed satellite CPE revenues are expected to pass $340 million by 2014.

- Fixed wireless broadband CPE is expected to increase at the fastest pace of all access technologies, with a CAGR of about 10 percent over the next five years.

- Tellabs, Motorola, and Alcatel-Lucent are leaders in FTTH CPE.