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Residential Gateway CPE Forecast

A major increase in worldwide broadband subscribers, along with the hot popularity of wireless- and VoIP-enabled equipment, is resulting in Customer Premises Equipment (CPE) market growth of nearly 20 percent in 2005, reports In-Stat. The broadband CPE market, composed of devices that primarily include modem and home-networking functionality, is transitioning from being dominated by modems toward a heavier focus on gateways.

"Broadband service providers are behind this transition, as they believe that it is necessary to deliver more advanced services. This transition will enable service providers to provide a back-end managed home network and add opportunities for additional revenue," says Joyce Putscher, In-Stat analyst.

In-Stat found the following:

- Many consumers are attempting to save on their phone bill by trying out several flavors of VoIP, which is boosting the market for VoIP-enabled CPE.
- The move from two-box solutions, such as modem/router combinations, to one-box residential gateway deployments for home networks means fewer boxes sold.
- This two-for-one box transition, however, will impact total broadband CPE unit growth over the next 5 years.

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