Digital home gateways almost triple worldwide in first quarter of 2007

June 8, 2007 - Digital home gateway unit shipments nearly tripled globally in the first quarter of 2007, according to Infonetics Research in its latest “Broadband CPE and Subscribers” report.

The worldwide broadband CPE (Customer Premise Equipment) market reached US$1.5bn in the same period, up 2% from the previous quarter.  Infonetics Research analyst Jeff Heynen commented: “We continue to see a shift away from traditional modems and, to a certain extent, broadband gateways, to IADs, EMTAs, and digital home gateways, all of which allow service providers and cable MSOs to offer bundled services today, but also the necessary traffic prioritization and security capabilities to easily layer on home automation, security and home media services."  Mr. Heynen added: " The increase in these more expensive devices will balance out the decline in baseline modems and will keep worldwide broadband CPE revenue stable through at least 2010, throughout our forecast period”.

Worldwide revenue for voice CPE, including DSL IADs (Integrated Access Devices), EMTAs (Embedded Multimedia Terminal Adaptors), VTAs (Voice Terminal Adaptors), digital home gateways and broadband routers with integrated VTA capability was down 13% in the first quarter of 2007 relative to the previous quarter, but up 26% from the first quarter of 2006.  Thomson leads the overall broadband CPE market, according to the report, with a 10% revenue share, followed by Linksys, Arris and Motorola.