In-Stat: Customer Premises Equipment market showed growth this year

A major increase in worldwide broadband subscribers, along with the hot popularity of wireless- and Voice over Internet Protocol-enabled equipment, is resulting in Customer Premises Equipment market growth of nearly 20% in 2005, reports In-Stat.

The broadband Customer Premises Equipment (CPE) market, composed of devices that primarily include modem and home-networking functionality, is transitioning from being dominated by modems toward a heavier focus on gateways, the high-tech market research firm says.

"Broadband service providers are behind this transition, as they believe that it is necessary to deliver more advanced services," says Joyce Putscher, In-Stat analyst. "This transition will enable service providers to provide a back-end managed home network and add opportunities for additional revenue."

A recent report by In-Stat found the following:

* Many consumers are attempting to save on their phone bill by trying out several flavors of Voice over Internet Protocol (VoIP), which is boosting the market for VoIP-enabled CPE.
* The move from two-box solutions, such as modem/router combinations, to one-box residential gateway deployments for home networks means fewer boxes sold.
* This two-for-one box transition, however, will impact total broadband CPE unit growth over the next five years.

The report, "Broadband CPE 2005: Focus on VoIP, Integration & Wireless," covers trends and worldwide vendor market shares.

In-Stat is based in Scottsdale, AZ. For more information visit www.instat.com.