Broadband boom lifts CPE, aggregation gear

The broadband boom drove up the global market for customer premises equipment to $4.9 billion in 2005, according to a new report from Infonetics. Citing a “phenomenal fourth quarter” in sales of DSL and cable modem CPE devices, the company said enterprise broadband growth and the popularity of service bundles are driving sales.

Infonetics forecast continued growth in the broadband CPE market to $6l5 billion by 2009. Globally, sales of embedded multimedia terminal adapters used in cable modem service hit $143.9 million in the fourth quarter of 2005 while sales of integrated access devices for ADSL service hit $95.7 million in that same time period.

“The healthy growth of ADSL IADs and EMTAs this quarter points to the increasing penetration of broadband voice among DSL and cable broadband subscribers,” said Jeff Heynen, directing analyst at Infonetics Research. “The consolidation of multiple capabilities into CPE that ensures the delivery of more revenue-generating services while simplifying the subscriber's desktop and, ultimately, living room, is in full swing.”

Separately, the company said sales of ADSL aggregation gear are also booming, and will grow 65% between 2005 and 2009 to hit $10.5 billion. That figure is based on 96% growth in DSL subscribers in that same period to 245 million by 2009.