It's clear that the consumer home network is changing. What was once nothing more than a few telephone lines and a basic data modem to connect to the Internet is becoming a hub for premium online video and data services--clearly changing the game.
With this new multi-service environment, broadband CPE and home networking vendors are developing multi-function devices that combine the functions of a modem, router, and voice gateway.
Infonetics confirms this trend in its two third quarter broadband access reports, Broadband CPE and Subscribers: PON, FTTH, Cable, and DSL and Home Networking Devices.
"With a bulk of the groundwork laid, service providers will shift their focus to turning up services in subscribers' homes," said Jeff Heynen, directing analyst for broadband access and video at Infonetics Research. "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."
Heynen added that, "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."
From a global market perspective, the home networking device market totaled $1.8 billion in Q311, down 2 percent from Q2 2011 due to expected seasonal slowdowns. However, on a year-over-year basis, home networking devices sales were up 10 percent.
Driven by a 9 percent revenue increase in broadband routers and a 16 percent rise in HomePlug powerline adapters, Asia Pacific was the only region that posted a sequential revenue gain for home networking devices (up 6 percent).
Leading the broadband CPE segment was ZTE, which held on to its number one spot for broadband CPE revenue and shipments in Q3 2011. A big contribution to ZTE's lead was its partnership with China Telecom to deliver Ethernet-based Fiber to the Home (FTTH) infrastructure and CPE to higher-end residential complexes in Shanghai.
Tied for second place behind ZTE were Motorola (NYSE: MSI) and Huawei followed by Technicolor and ARRIS (Nasdaq: ARRS).
For more:
- see the release
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