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Gateways to Dominate Digital Home CPE

In 2006, 127 million worldwide broadband customer premises equipment (CPE) units (broadband modems, routers, and residential gateways) shipped, resulting in an increase of almost 20 percent over 2005, according to an In-Stat market study.

By 2011, annual CPE revenue will be dominated by residential gateways, with new gateways garnering over half of total worldwide revenue. In-Stat expects to see a healthy volume of FTTH ONTs ship this year, which will help to stabilize the broadband modem/ONT market segment.

In terms of wired versus wireless CPE, in 2006, In-Stat saw a significant difference between the percentage of routers that shipped that had wireless LAN versus DSL residential gateways. By 2010, they believe that worldwide home LAN PHY interface shipments will surpass 500 million.

Meanwhile, the installed base of home networks will climb by over 35 percent in 2007, driven significantly by Asia. By the time worldwide broadband subscribers exceed 500 million in 2010, there will be a very significant installed base of equipment that presents opportunities for replacements and upgrades.

Gigabit Ethernet, VoIP, the DSL Forum's TR-69, and 802.11n are all drivers for CPE upgrades and replacements over the forecast period.

In-Stat's new Residential Connectivity report entitled "Global Home Networking & Broadband CPE Outlooks," contains analysis of worldwide equipment shipments, home network forecasts, and consumer survey data.

In-Stat examines key worldwide CPE markets for broadband modems, routers, and residential gateways for DSL, cable, Fiber-to-the-Home (FTTH), Fixed Wireless Broadband, and Fixed Satellite Broadband, with VoIP forecasts for DSL, cable, and router equipment.

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