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Residential Broadband Gateways Enable Telco VAS

Driven primarily by the needs of broadband service providers who seek ways to differentiate their Internet access offerings, the residential gateway market continues to gain in importance within the home networking infrastructure market.

Telecom service providers have embraced the gateway concept, and gateway vendors have enjoyed success in shipping gateways. According to the latest market study by In-Stat, they forecast that residential gateway shipments will surpass 50 million units in 2011.

"Many more telco service providers are supplying residential gateways instead of DSL broadband modems, not only for those customers requesting gateways, but also, at times, to create opportunities for future service add-ons and to better manage their customer networks," says Vahid Dejwakh, Industry Analyst at In-Stat.

The residential gateway market continues its global dominance, due to telco provider's preference for multimedia gateways over basic modems -- because gateways fulfill consumer demand for value-added services (VAS) and promise greater long-term revenue possibilities.

In-Stat's latest market study findings include:

- Total broadband customer premise equipment (CPE) shipments to Asia-Pacific are expected to increase from 31 percent in 2010 to 36 percent of all shipments in 2015.

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

- The Rest of World (ROW) region, which includes Latin America, the Middle East and Africa, saw the highest growth rate of 10.4 percent for 2010.

- Tellabs, Motorola, and Alcatel-Lucent are leaders in fiber to the home (FTTH) CPE.

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