& cplSiteName &

Make Way for Gateways

Alan Breznick
11/12/2013
50%
50%

Although they may still be relatively small in number, home media gateways are starting to make their presence felt in the pay TV market.

In two separate reports, analyst firms Multimedia Research Group (MRG) Inc. and Infonetics Research Inc. confirmed the growing industry interest in media gateways, which are centralized über boxes that can support multiple video and broadband services in the home. Both reports found that providers are seeking to deploy more gateways in response to consumer demand for more advanced video and home networking services, especially multi-screen video.

MRG, a unit of SNL Kagan , predicts that global shipments of home media gateway products will reach nearly 10 million units this year, up from 7.7 million units in 2012. As a result, it sees vendor revenues climbing to almost $3 billion this year, up from $2.3 billion last year.

Even so, MRG noted that gateway shipments will still account for just 4 percent of all set-top box shipments this year. However, the firm expects demand for the gateways to "increase significantly over the next few years."

With a hefty average sales price of about $300 per box, gateways should be a lucrative source of income for set-top makers. But that relatively steep price will also limit their penetration to high-income regions around the world, at least initially, MRG said. Specifically, the firm expects that "virtually all" gateway deployments "will be confined" to North America and Europe through 2015.

So far, "headed" gateways, which attach directly to TV sets, easily make up the lion's share of product shipments. MRG projected that "headless" gateways, which are more advanced boxes that don't hook up to TVs, will account for only 2 percent of all global gateway shipments in 2013. But many industry experts believe that headless gateways will overtake headed gateways down the line.

In its report, Infonetics projects that home networking devices, which it describes a bit more broadly as gateways and set-tops that integrate wireless and wired technologies to distribute video signals throughout the home, will generate substantially more revenue this year. The firm reported that global vendor revenue from home networking devices climbed to $5.4 billion in the first half of the year, up 6 percent from the second half of 2012. Devices using multimedia-over-coax (MoCA) technology, which ship primarily in North America, drove most of the growth.

Zeroing in on broadband data gateways, Infonetics found that residential gateway revenues rose 7 percent in the first half of the year on a sequential basis. The firm said such gateways, which combine the functions of modems and routers, "continue to cannibalize retail routers," depressing router shipments and revenues.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
albreznick
50%
50%
albreznick,
User Rank: Blogger
11/14/2013 | 5:42:54 PM
Re: Costly, but...
That's true. It may be good value for what you get. But $300 is still a pretty stiff price to pay for a new video-related box in the home, no matter how souped-up it is. So there's no question that gateways will have appeal. The big question is whether they will be big mainstream products or just higher-end niche ones. The jury's still out on that.  
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
11/13/2013 | 12:27:26 PM
Costly, but...
You're right that $300 per box is costly, at leaston the surface. However, if one has already opted for video streaming and other data-intensive services, the $300 may seem to be little to pay if the box optimizes data needs for mutiple device users.

Late in the afternoon, the commuting college student and high school student could be home, each on a device or two like an iPhone and laptop (multiply by number of children on data-intensive devices), while a parent or two might be one or more of their own devices. Add to that a VOIP phone, and all of a sudden, one is more than happy to pay not to have mutiple devices freeze up or slow down to the point that they are unusable during periods of high demand.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
11/12/2013 | 2:34:53 PM
Virtual gateways
As this equipment gets more high function and thus more high cost, I'm wondering if service providers won't look for virtualized options - home broadband is one of the scenarios currently under discussion. 
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Nokia's Advancement Plan: Bring Old Skills to New Roles

6|29|16   |   7:57   |   (1) comment


Nokia's Sandy Motley advises women to change their mindsets; get aggressive about advancing their careers; develop strong, diverse support networks; and always bring forth learned skills to take on new challenges and different roles.
Between the CEOs
CEO Chat: Cisco's Yvette Kanouff

6|28|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
LRTV Interviews
Comcast: Prepping Next-Gen Video Services

6|28|16   |     |   (0) comments


In this LRTV interview, Comcast's Elad Nafshi outlines where MSO stands with cloud DVR, OTT video, college and gigabit services.
LRTV Custom TV
Energy 2020: Creating Unique Standards for Cable's Unique Networks

6|28|16   |   09:30   |   (0) comments


Cable's unique network requirements require a specific set of standards for operators to increase power efficiency, according to Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee, and Ian Oliver, managing director of the Trenchant Group and a member of the ...
LRTV Custom TV
Masergy: 'Now Is the Time for NFV'

6|28|16   |     |   (0) comments


Hear Ray Watson, VP of Global Technology at Masergy, talk about the advantages that enterprises can leverage using Network Function Virtualization (NFV), and how Masergy takes a unique approach to solving customers' problems. For more information on Masergy, please visit www.masergy.com.
LRTV Custom TV
Masergy Leads the Charge With NFV Capabilities

6|28|16   |     |   (0) comments


Hear Tim Naramore, CTO at Masergy, talk about how focusing on solving specific customer challenges, providing self-service automation tools and being laser focused on the customer experience has enabled Masergy to be a leader in the NFV space. For more information on Masergy, please visit www.masergy.com.
LRTV Custom TV
Private Company of the Year - Affirmed Networks

6|27|16   |     |   (0) comments


At BCE 2016, Steve Saunders speaks to Hassan Ahmed about Affirmed's success.
LRTV Custom TV
Energy 2020: Growing Services, Not Consumption

6|24|16   |   07:18   |   (0) comments


Management of power requirements needs to be a key consideration as cable operators deploy new services, says Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee. In this video, Cooper discusses the importance of cable operators and technology partners ...
LRTV Huawei Video Resource Center
Huawei & TDC First to Launch DOCSIS 3.1 Trial in Europe

6|24|16   |     |   (0) comments


To meet the rising demands for high-speed broadband and to tackle fierce competition for 1.5 million household, TDC wanted to upgrade its network to use the latest technology. Using Huawei's DOCSIS 3.1 solution, TDC is now able to offer gigabit speeds to its customers.
LRTV Documentaries
OPNFV Summit: Key Takeaways

6|22|16   |   03:28   |   (0) comments


MANO shortfalls, an increasingly bloated open source ecosystem and the cultural challenges for network operators were among the key takeaways from the OPNFV Summit in Berlin.
LRTV Huawei Video Resource Center
Bringing Ultra Broadband to the South Pacific

6|22|16   |   7:55   |   (0) comments


At Singapore's UBBS 2016 summit, Light Reading speaks to Lim Chee Siong, Huawei's CMO in the South Pacific Region.
LRTV Custom TV
Juniper's NFV Platform

6|22|16   |     |   (0) comments


A telco cloud is a key enabler for service providers to deliver virtualized services to their customers. Juniper has a differentiated approach with an open and comprehensive NFV platform to build the cloud of the future for multiple use cases.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
'Brexit' Vote Hits BT, Vodafone
Iain Morris, News Editor, 6/24/2016
Brexit: It's Hard to See an Upside
Ray Le Maistre, Editor-in-chief, 6/29/2016
AT&T Settles on LTE for Cellular IoT
Dan Jones, Mobile Editor, 6/22/2016
Qualcomm Readies Lower-Band 5G Testbed
Dan Jones, Mobile Editor, 6/27/2016
Sigfox Said to Face Customer Backlash
Iain Morris, News Editor, 6/27/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
At the BCE 2016 show in Austin, ECI Telecom CEO Darryl Edwards tells Light Reading founder and CEO about the Elastic Network concept and the company's NFV and cybersecurity developments.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.