The broadband Customer Premise Equipment (CPE) market is transitioning from a modem-dominated one to a gateway-dominated one, with cable firms and telcos finally turning talk into action with orders for gateway-based CPE. Providers are evolving CPE strategies to include fuller gateways that enable, at the very least, a back-end managed home network, according to In-Stat/MDR.
The residential gateway market will drive growth in the broadband CPE market for the next five years. The market will go from just under 5 million gateways shipped in 2004 to over 18 million by 2008, at an annual growth rate of 30 percent.
The report also found that:
VoIP won't be the only advanced service. Increasingly, In-Stat/MDR believes video services will be enabled through advanced gateway devices. "As broadband access technologies improve and compression and video networking capabilities advance, more consumers will be getting high quality video content through a gateway and redistributing it through the home," says Wolf.
Broadband providers such as Free in France and YahooBB! in Japan are examples of service providers already shipping advanced gateways that offer video capabilities.
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