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VDSL broadband gateways up 84% in 3Q07; broadband CPE hits $1.5B
[December 20, 2007]

VDSL broadband gateways up 84% in 3Q07; broadband CPE hits $1.5B

(Market Wire Via Thomson Dialog NewsEdge) CAMPBELL, CA, December 20 / MARKET WIRE/ --

Broadband CPE manufacturer revenue and port
shipments are up slightly in 3Q07 from 2Q07, with worldwide revenue
reaching $1.5 billion, says Infonetics Research in its latest "Broadband
CPE and Subscribers" quarterly report.

Growth in the broadband CPE market is forecast to be slow but steady across
all categories as units increase but average sales prices (ASPs) decrease,
the report shows.

Since 2004, worldwide DSL port shipments have increased in the strong
double-digits year over year, but 2007 will be an inflection point for DSL
port shipments, as growth remains flat or declines slightly from 2008 on.
The downturn is being caused by major markets getting saturated and growth
in developing markets slowing down after growing at a torrid pace over the
last few years. This will result in slower DSL subscriber growth and, in
turn, slower DSL CPE growth, the report states.

"The overall broadband CPE market suffered parallel declines as the number
of net DSL and cable broadband subscriber additions fell this quarter. The
third quarter is typically strong for CPE sales, with parents signing up
for broadband subscriptions for their children returning to school;
however, this seasonal upswing was not strong enough to offset economic
concerns in the US and Europe, which may be preventing people from
increasing spending on their broadband connections," said Jeff Heynen,
directing analyst at Infonetics Research.

Other highlights from the report:

-- Residential gateway revenue dropped slightly in 3Q07 due to slower DSL
subscriber growth in North America and EMEA

-- Worldwide VDSL broadband gateway revenue shot up 84% between 2Q07 and
3Q07; cable broadband gateway revenue jumped 27%

-- Arris inched past Thomson to take the revenue lead for overall
broadband CPE this quarter, due to continued strong sales of high ASP EMTAs
to Comcast and other major MSOs

-- Thomson takes the lead in the fast growing digital home gateway market
in 3Q07; 2Wire moves up to 2nd, and Actiontec falls from 1st to 3rd

-- 41% of all broadband CPE revenue comes from North America in 3Q07, 33%
from EMEA, 18% from Asia Pacific, and 8% from CALA


Infonetics' broadband CPE report provides worldwide and regional forecasts,
market size, and market share for DSL and cable CPE (modems, gateways,
IADs, EMTAs), voice terminal adapters (VTAs), wired and wireless broadband
routers, and residential gateways (broadband, multiservice, and digital
home gateways).

Companies tracked include 2Wire, Actiontec, Arris, AVM, Buffalo, D-Link,
Foxconn, Gemtek, Huawei, Linksys, Motorola, NETGEAR, SAFRAN, Scientific
Atlanta, Siemens, SMC, Sumitomo, Thomson, Westell, Zhone (Paradyne), ZTE,
ZyXEL, and others.

Download report highlights by logging in to Infonetics' access portal from
www.infonetics.com (see the Broadband Networks area). For sales, contact
Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is the premier international
market research and consulting firm specializing in data networking and
telecom, providing a complete view of the market. Services include
quarterly market share and forecasting, end-user survey research, service
provider survey research, and service provider capex analysis.

Press Contact:
Jeff Heynen
Directing Analyst, IPTV and Next Gen OSS/BSS
Infonetics Research
+1 408.583.3359Email Contact

Copyright 2007 Market Wire, Incorporated

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