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Broadband CPE units up 8%, revenue down 5% in 3Q

Worldwide broadband Customer Premise Equipment (CPE) revenue totaled US$1.2 billion in the third quarter, down 5% f...


December 5, 2005  


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Worldwide broadband Customer Premise Equipment (CPE) revenue totaled US$1.2 billion in the third quarter, down 5% from the quarter before, while unit shipments increased 8% to 28.8 million, according to Infonetics Research’s quarterly Broadband Modems, Routers and Gateways report.

Annual revenue is forecast to grow to US$4.6 billion by 2008. Worldwide voice-enabled broadband CPE (ADSL IADs, EMTAs, and voice terminal adapters) had its biggest quarter to date with US$188.4 million in the third quarter, up 2% from 2Q05.

Annual voice CPE revenue is expected to grow 123% between 2004 and 2008 as consumers and enterprises around the world continue to adopt VoIP.

“The convergence of voice, data, and video services is driving CPE growth, particularly voice-enabled CPE, residential gateways and, in the long term, IP set top boxes,” said Jeff Heynen, directing analyst for broadband and IPTV at Infonetics Research.

“Service convergence is also driving the consolidation of disparate capabilities into highly intelligent, multifunctional CPE designed to simplify the subscriber experience.”

According to Infonetics, D-Link overtook Cisco-Linksys this quarter for the number-one spot in overall broadband CPE revenue. Cisco-Linksys is second and Motorola is third.