Operators Invest in Next-Gen Broadband Equipment for Consumer Premises

  • Customer-Premises Equipment
CAMPBELL, CA - Operators worldwide are investing in the next generation of broadband technology for the home, according to a new report by Infonetics Research. Sales of fiber-to-the-home equipment are growing faster than for any other technology.

Notes Jeff Heynen, directing analyst for broadband access and video at Infonetics Research, "As we mentioned earlier, we expect the global wireline broadband consumer-premises equipment (CPE) market to peak in 2011 due to a surge of infrastructure investments this year by service providers, especially in emerging markets. With a bulk of the groundwork laid, service providers will shift their focus to turning up services in subscribers' homes.

"In fact, we're already seeing steady growth in wideband cable CPE and fiber-to-the-home CPE, particularly in China, a clear trend that operators are investing in the next generation of broadband technology for the home. The shift away from basic modems to high-end devices, such as VDSL gateways, VDSL IADs, wideband cable gateways and wideband EMTAs, reflects the fact that operators are preparing consumer homes with enough processing power to handle premium services, from high-definition video to home automation and home security."

Highlights of the report include:

. Global broadband CPE revenue held steady (up 1 percent) in 3Q11 over 2Q11, with FTTH CPE revenue up 16 percent, cable CPE up 2 percent and DSL CPE down 6 percent.
. Year-over-year, global FTTH CPE revenue is up 36 percent, cable CPE is up 18 percent and DSL CPE is up 4 percent.
. ZTE held on to its number one spot for broadband CPE revenue and shipments in 3Q11. Its partnership with China Telecom to deliver Ethernet FTTH infrastructure and CPE for higher-end residential complexes in Shanghai led to a surge in Ethernet FTTH ONT shipments this quarter.
. Motorola and Huawei tied for second place for overall broadband CPE revenue, followed by Technicolor and ARRIS.
. ZTE also took the top spot in the highly competitive FTTH CPE market from Huawei in 3Q11, and held onto the top spot in DSL revenue as well, thanks to the strength of ADSL gateway sales in China, EMEA, and Latin America.
. Motorola held onto the top spot in cable CPE revenue despite a 7 percent worldwide decline in the overall market.

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