Worldwide Residential Gateway Revenues to Surpass 10 Billion in 2015

SCOTTSDALE, Ariz., May 16, 2011 - The residential gateway market continued its rise in the broadband customer premises equipment (CPE) space, primarily due to telco providers favoring gateways over modems since gateways fulfill consumer demand and promise greater future revenue possibilities for operators.   As a result, new In-Stat (www.in-stat.com) research forecasts that residential gateway revenues will surpass $10 billion in 2015.

"We define residential gateways as essentially any type of broadband modem that also includes routing and/or wireless access point capabilities, says Vahid Dejwakh, Analyst. "More and more different types of modems now also come with embedded Wi-Fi, which qualifies them as residential gateways, and many more telco service providers are supplying residential gateways instead of just DSL broadband modems. This is not only because customers request a gateway, but also to present possible future service add-ons and to increase their ability to manage their customers' networks."

Additional research findings include:

• Residential gateway shipments will overtake broadband modem shipments in 2014 as more and more devices incorporate Wi-Fi and routing capabilities.
  
• Worldwide fixed satellite CPE revenues are expected to pass $340 million by 2014
  
• Fixed wireless broadband CPE is expected to increase at the fastest pace of all access technologies, with a CAGR of about 10% over the next five years.
  
• Tellabs, Motorola, and Alcatel-Lucent are leaders in FTTH CPE.

Recent In-Stat research, Residential Gateways Take Over Broadband CPE Volume (#IN1104652RC), covers broadband modems, SOHO routers, and residential gateway equipment for DSL, cable, fiber-to-the-home/premises (FTTH/P), fixed wireless broadband (FWB), and fixed satellite broadband (FSB). It includes:

• Annual router shipments by wired-only and Wi-Fi technology by region from 2010 to 2015
• Annual revenues by region for each type of access technology: DSL, FTTH/P, fixed wireless, and fixed satellite CPE, from 2010 to 2015
• Annual revenues by region for all router shipments, from 2010 to 2015
• Regional breakouts include Asia/Pacific, Europe, North America, and ROW

This research is part of In-Stat's Connected Digital Home service provides comprehensive analysis and forecasts of the worldwide connected digital home and home networking market, including in-home infrastructure, networked and web-enabled media devices, features, semiconductors, applications, and consumer perspectives.

Related In-Stat research:

World Connecting at Broadband Speeds, More Mobile in 2010

3Q10 Broadband CPE Tracker: By Region, Product, Technology, and Vendor

3Q10 Wi-Fi Network Equipment Tracker: By Region, Form Factor, Technology and Vendor

Wireless LAN Market Estimates and Forecast by Device and by Technology, 2009-2015

Wi-Fi in Portable and Computing Devices

For more information, contact:

Vahid Dejwakh, Industry Analyst
Phone: 480-483-4450
Email: vdejwakh@In-Stat.com

Rick Vogelei, Marketing Manager
Phone: 480-483-4476
Email: rvogelei@in-stat.com

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In-Stat's market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology vendors, equipment manufacturers, service providers and media companies worldwide rely on In-Stat to support critical business, product and technology decisions.