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Broadband CPE 3Q Results & Forecast

Worldwide broadband CPE revenue totaled $1.2 billion in 3Q05, down 5 percent from the 2Q05, while unit shipments increased 8 percent to 28.8 million, according to Infonetics Research's quarterly Broadband Modems, Routers, and Gateways report. Annual revenue is forecast to grow to $4.6 billion by 2008.

Worldwide voice-enabled broadband CPE (ADSL IADs, EMTAs, and voice terminal adapters) had its biggest quarter to date with $188.4 million in 3Q05, up 2 percent from 2Q05. Annual voice CPE revenue is expected to grow 123 percent between 2004 and 2008 as consumers and enterprises around the world continue to adopt VoIP.

"The convergence of voice, data, and video services is driving CPE growth, particularly voice-enabled CPE, residential gateways and, in the long term, IP set top boxes," said Jeff Heynen, directing analyst for broadband and IPTV at Infonetics Research. "Service convergence is also driving the consolidation of disparate capabilities into highly intelligent, multifunctional CPE designed to simplify the subscriber experience."

3Q05 Highlights
- D-Link overtook Cisco-Linksys this quarter for the number-one spot in overall broadband CPE revenue, Cisco-Linksys is second, Motorola is third
- North America and EMEA dropped overall broadband CPE revenue share, while Asia Pacific and CALA gained (North America has 37%, EMEA 29%, Asia Pacific 28%, CALA 6%)
- By 2008, Asia Pacific will take over as the leading broadband region

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