Broadband CPE Market Grew 15% in 2006

Press Release - March 20, 2007

Increasing global demand for high-speed internet services is fueling growth in the broadband CPE (Consumer Premises Equipment) market, which grew 15% in 2006 alone, to reach $5.6 billion by year’s end.

Sales of residential gateway devices jumped 39% in 2006, to $2.9 billion worldwide, according to a report by Infonetics Research. Worldwide revenue from voice CPE, meanwhile, jumped by an astounding 115% and now accounts for around 30% of the global CPE market.

Strong CPE sales are expected to continue in the years to come, especially in developing markets, but revenue from ADSL gateways is leveling off, according to Infonetics, while intense competition in the voice sector cuts into voice CPE revenues. Equipment makers will need to focus more on advanced applications like video and the digital home.

“Right now, service providers are competing with each other for voice dollars, which is driving their purchase of EMTAs and IADs,” explained analyst, Jeff Heynen, in a statement for Infonetics. “Carriers are shifting their focus to video, though, so phase two of the triple play battle will spur big increases in gateway sales - especially VDSL broadband gateways, revenue for which is expected to quadruple in 2007, and digital home gateways, revenue for which will grow six-fold between now and 2010.”