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Digital Home Gateway Shipments to Double

Infonetics Research reported that the worldwide broadband customer premises equipment (CPE) market -- which includes DSL and cable modems, residential gateways, voice terminal adapters, and voice CPE -- sequentially dropped 9 percent in 1Q08, to $1.1 billion.

The Infonetics market study report indicates the quarterly drop is in line with normal first quarter softness, and that revenue for some emerging segments in the market, such as cable broadband gateways and very high speed DSL (VDSL) broadband gateways, grew sequentially in double and triple percents.

"Softness in 1Q08 broadband CPE was in line with expectations except that standard cable modems had a larger decline in the quarter than usual," said Mark Showalter, directing analyst for broadband networks at Infonetics Research.

"Service providers continue to use bundled CPE with advanced functionality to entice subscribers into long term contracts for broadband access."

Infonetics' broadband CPE report provides worldwide and regional forecasts, market size, and market share for DSL CPE (ADSL, VDSL, and G.SHDSL modems and gateways; ADSL IADs); standard and wideband cable CPE (modems, gateways, and EMTAs); residential gateways (broadband, multiservice, and digital home gateways); voice terminal adapters (VTAs), and voice CPE.

Other highlights from the report include:

- Digital home gateway shipments are forecast to more than double between 2007 and 2011.

- The ADSL IAD market segment declined significantly in 1Q08 as European service providers started deploying digital home gateways instead of IADs.

- Thomson remained the worldwide leader in overall broadband CPE revenue despite a relatively tough quarter in 1Q08.

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