BOSTON -- The market for DSL customer premises equipment (CPE) is undergoing a profound transformation, according to a new Yankee Group report, "Global DSL CPE Remains Strong in a Volatile Market." The Asia-Pacific region, which is driving much of the Global DSL CPE growth, will exceed the $1 Billion mark next year and continue to grow. North America will remain strong, but revenues will drop below the $500 million market and remain there over the five-year forecast period. Europe will increase from approximately $570 million in 2002, to just over $900 million in 2007, and Latin America will hover around the $70 million mark for most of the forecast. Gateways and routers--featuring built-in DSL modems that share broadband connections in homes and businesses--are replacing basic modems used to terminate DSL lines. New opportunities are emerging for DSL CPE vendors that can migrate end users to devices that will bolster margins. "The DSL CPE market has experienced much of the disruption of the broadband landscape over the past 18 months," according to report author Matt Davis, Yankee Group Broadband Access Technologies director. "Despite falling prices and new entrants into this competitive arena, the DSL customer premises equipment market opportunity will continue to be strong over the next 5 years." The report defines DSL CPE, outlines emerging trends that are shaping product development and the overall market, and offers a 5-year forecast measuring DSL CPE unit shipments and revenues generated out of the four major global markets. Yankee Group