Broadband CPE Revenues Grow

Infonetics reports broadband CPE revenue up 3% to $1.3B in Q1, units down 2%

June 2, 2006

2 Min Read

CAMPBELL, Calif. -- The worldwide broadband CPE market increased 3% to $1.3 billion in 1Q06, despite unit shipments dipping 2% to 30.2 million, as service providers and cable operators reached into their inventory for baseline CPE without buying as many new products, according to Infonetics Research's latest Broadband CPE report.

As service providers continue to bundle voice, data, video, and wireless services in triple and quadruple play offerings to attract new customers and reduce churn among existing customers, annual broadband CPE revenue will show healthy gains through 2009, when it will reach $8.6 billion.

"Voice terminal adapters and EMTAs both had a phenomenal first quarter on the heels of record fourth quarter sales," said Jeff Heynen, directing analyst at Infonetics Research. "Continued strong sales of voice-enabling CPE is further proof of the success North American cable operators are having in signing up new voice subscribers. Telcos and cable operators can now justify the higher cost of more integrated CPE because it allows them to deploy additional revenue-generating services."

1Q06 Highlights

  • Worldwide VTA revenue jumped 110% and worldwide EMTA revenue jumped 27% from 4Q05

  • 41% of worldwide broadband CPE revenue comes from DSL CPE, 25% from cable CPE, 28% from broadband routers, and 6% from VTAs and IP set top boxes

  • High growth is expected for VDSLs and broadband gateways, particularly in 2006

  • The number of worldwide DSL subscribers is expected to reach 245 million in 2009, cable broadband subscribers will close in on 70 million, and IPTV subscribers will surge to over 53 million

  • Linksys is the overall broadband CPE market leader, Motorola is second for revenue, D-Link is second for unit shipments

  • 37% of total broadband modem, router, and gateway revenue comes from North America, 30% from EMEA, 27% from Asia Pacific, and 6% from CALA

Infonetics Research Inc.

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