SOURCE: Infonetics Research

December 20, 2007 18:01 ET

VDSL broadband gateways up 84% in 3Q07; broadband CPE hits $1.5B

CAMPBELL, CA--(Marketwire - December 20, 2007) - Broadband CPE manufacturer revenue and port shipments are up slightly in 3Q07 from 2Q07, with worldwide revenue reaching $1.5 billion, says Infonetics Research in its latest "Broadband CPE and Subscribers" quarterly report.

Growth in the broadband CPE market is forecast to be slow but steady across all categories as units increase but average sales prices (ASPs) decrease, the report shows.

Since 2004, worldwide DSL port shipments have increased in the strong double-digits year over year, but 2007 will be an inflection point for DSL port shipments, as growth remains flat or declines slightly from 2008 on. The downturn is being caused by major markets getting saturated and growth in developing markets slowing down after growing at a torrid pace over the last few years. This will result in slower DSL subscriber growth and, in turn, slower DSL CPE growth, the report states.

"The overall broadband CPE market suffered parallel declines as the number of net DSL and cable broadband subscriber additions fell this quarter. The third quarter is typically strong for CPE sales, with parents signing up for broadband subscriptions for their children returning to school; however, this seasonal upswing was not strong enough to offset economic concerns in the US and Europe, which may be preventing people from increasing spending on their broadband connections," said Jeff Heynen, directing analyst at Infonetics Research.

Other highlights from the report:

--  Residential gateway revenue dropped slightly in 3Q07 due to slower DSL
    subscriber growth in North America and EMEA
--  Worldwide VDSL broadband gateway revenue shot up 84% between 2Q07 and
    3Q07; cable broadband gateway revenue jumped 27%
--  Arris inched past Thomson to take the revenue lead for overall
    broadband CPE this quarter, due to continued strong sales of high ASP EMTAs
    to Comcast and other major MSOs
--  Thomson takes the lead in the fast growing digital home gateway market
    in 3Q07; 2Wire moves up to 2nd, and Actiontec falls from 1st to 3rd
--  41% of all broadband CPE revenue comes from North America in 3Q07, 33%
    from EMEA, 18% from Asia Pacific, and 8% from CALA

Infonetics' broadband CPE report provides worldwide and regional forecasts, market size, and market share for DSL and cable CPE (modems, gateways, IADs, EMTAs), voice terminal adapters (VTAs), wired and wireless broadband routers, and residential gateways (broadband, multiservice, and digital home gateways).

Companies tracked include 2Wire, Actiontec, Arris, AVM, Buffalo, D-Link, Foxconn, Gemtek, Huawei, Linksys, Motorola, NETGEAR, SAFRAN, Scientific Atlanta, Siemens, SMC, Sumitomo, Thomson, Westell, Zhone (Paradyne), ZTE, ZyXEL, and others.

Download report highlights by logging in to Infonetics' access portal from (see the Broadband Networks area). For sales, contact Larry Howard, vice president, at or +1 (408) 583-3335.

Infonetics Research ( is the premier international market research and consulting firm specializing in data networking and telecom, providing a complete view of the market. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Contact Information

  • Press Contact:
    Jeff Heynen
    Directing Analyst, IPTV and Next Gen OSS/BSS
    Infonetics Research
    +1 408.583.3359
    Email Contact