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CAMPBELL, California, November 30, 2006—Strong growth in broadband use around the world spurred big revenue increases for CPE and CMTS hardware manufacturers in the third quarter, while intense competition drove down revenue for DSL aggregation hardware manufacturers, according to three new reports from Infonetics Research.
According to the reports—Broadband CPE, DSL Aggregation Hardware, and CMTS Hardware:
- Worldwide broadband CPE sales increased 8% to $1.5 billion in 3Q06
- CMTS sales jumped 14% to $256.5 million
- While DSL aggregation hardware sales dropped 16% to $1.5 billion, DSL port shipments are expected to increase 19% between 2005 and 2006, and will continue increasing quarterly through at least 2009
“Broadband connectivity continues to grow in most regions as service providers entice customers with bundled voice, data and video services, and as enterprises increasingly turn to broadband for their network connectivity needs. The increases in broadband CPE and CMTS shipments this quarter are proof of this trend,” said Infonetics Research analyst Jeff Heynen.
“DSL equipment was off somewhat, mainly due to a traditional third quarter slowdown, but also because vendors are getting more competitive to win major deals, and the subsequent downward pricing pressure continues to eat into vendors' profit margins,” Heynen added.
Subscriber Highlights
- The number of worldwide IPTV subscribers will reach 69 million in 2009, a 5-year CAGR of 132%
- The number of worldwide cable broadband subscribers will reach 71 million in 2009, a 5-year CAGR of 11%
- The number of worldwide DSL subscribers will reach 274 million in 2009, a 5-year CAGR of 22%
Broadband CPE Market Highlights
- Worldwide broadband CPE unit shipments are up 9% in 3Q06
- IP set top box sales are up 21% in 3Q06, as IPTV becomes an integral part of the service bundle in an increasingly competitive broadband market
- Worldwide residential gateway revenue grew to $672 million, with strong annual revenue growth forecast at least through 2009
- Linksys is the worldwide broadband CPE revenue leader in 3Q06, followed by D-Link and then Arris
CMTS Market Highlights
- CMTS revenue per port increased in 3Q06 in part because of the initial introduction of M-CMTS and Wideband capabilities
- Port shipments are forecast to increase on a quarterly basis, but intense competition combined with MSOs placing downward pressure on CMTS vendors will slow growth in manufacturer revenue
- Of the 3 worldwide CMTS leaders capturing 98% of the market revenue, Cisco was up $19 million, Arris was up $7 million, and Motorola was up nearly $9 million
DSL Aggregation Hardware Market Highlights
- Worldwide DSL aggregation hardware DSL ports (from DSLAMs, NGDLCs, and MSAPs) dipped 2% in 3Q06 after an 8% increase in 2Q06
- North America saw the biggest downturn in DSL sales this quarter, with port shipments down 29%, as operators focus on improving take rates with existing equipment
- IP DSLAMs are being chosen in place of ATM DSLAMs, reaching $3.6 billion in 2009, as networks around the world prepare to deliver new IP services such as VPNs, VoIP, and IPTV
- In 3Q06, DSLAMs made up 63% of total DSL aggregation hardware sales, NGDLCs 16%, and MSAPs 21%
- Alcatel leads in worldwide DSL aggregation hardware port and revenue market share in 3Q06, followed by Huawei and ZTE
Infonetics’ Broadband CPE report provides worldwide and regional forecasts, market size, and market share for DSL and cable CPE (including totals for residential gateways), voice terminal adapters (VTAs), embedded multimedia terminal adapters (EMTAs), IP set top boxes, and wired and wireless broadband routers. Companies tracked include 2Wire, Amino, Arris, Cisco, D-Link, Huawei, Linksys, Motorola, NETGEAR, Scientific Atlanta, Siemens, Sumitomo, Thomson, Westell, ZTE, ZyXEL, and others.
The CMTS Hardware report provides worldwide and regional forecasts, market size, and market share for ATM DSLAMs, IP DSLAMs, next gen DLCs, and MSAPs. Companies tracked include ADTRAN, Alcatel, Calix, Ciena, ECI, Ericsson, Fujitsu, Huawei, Lucent, Marconi, Motorola, Nokia, Samsung, Siemens, Sumitomo, Tellabs, UTStarcom, Zhone, ZTE, and others.
The DSL Aggregation Hardware report provides worldwide and regional forecasts, market size, and market share for CMTS manufacturer revenue, upstream ports, and downstream ports, and follows Arris, BigBand, C9, Cableway, Cisco, and Motorola.
Download sample data at www.infonetics.com. 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. Services include market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.
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