Residential gateways rising stars in CPE market, says In-Stat report

Top broadband CPE (consumer premises equipment) providers Tellabs (Nasdaq: TLAB), Motorola (NYSE: MMI), and Alcatel-Lucent (NYSE: ALU) may have bright futures ahead if the forecasts in an In-Stat report bears fruit. As more consumer electronics manufacturers incorporate WiFi and routing capabilities into their devices, shipments of such residential gateway devices worldwide are growing and will overtake shipments of broadband modems by 2014, the research firm says.

Revenues for residential gateways will pass $10 billion in 2015.

One reason for the shift in CPE from broadband modems to gateways, says In-Stat, is that telcos see them as both a way to fulfill current consumer demand for more robust devices and to prepare for future revenue opportunities through such devices.

The research firm defines residential gateways as any type of broadband modem that also includes routing or wireless access point capabilities, or both. "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," said Vahid Dejwakh, Analyst at In-Stat. "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."

Tellabs, Motorola, and Alcatel-Lucent are the top three Fiber to the Home (FTTH) CPE providers, according to the report.

For more:
- see the news release

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