Sales of FTTH Residential Gateways and DOCSIS 3 Modems Rise

CAMPBELL, CA - The global market for broadband customer-premises equipment (CPE) - including DSL, cable and FTTH - grew 4 percent from 4Q11 to 1Q12, passing $1.76 billion, according to a new report from Infonetics Research.

Fiber-to-the-home CPE continues to grow, with 1.25G EPON optical network terminal (ONT) and 2.5G GPON ONT residential gateway revenue up by double digits in 1Q12. However, the cable CPE segment showed the strongest growth, with revenue up 10 percent quarter over quarter, driven primarily by DOCSIS 3.0 upgrades in North America.

“The growth we’re seeing in wideband (DOCSIS 3.0) CPE revenue shows that the infrastructure investments made by operators in DOCSIS 3.0 equipment over the past few years are now paying off in new subscribers and upgrades to existing subscribers’ services,” notes Jeff Heynen, directing analyst for broadband access and video at Infonetics Research.

Heynen adds, “North America is a hotbed for wideband activity right now, with wideband CPE shipments up more than 50 percent from the same time last year, illustrating that the cable companies are making a consistent effort to move subscribers to DOCSIS 3.0 service tiers. This is something we haven’t seen until now.”

Huawei took back the top spot in 1Q12, slightly edging out ZTE; both vendors are leading suppliers of FTTH CPE to China Telecom and China Unicom.

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