Infonetics Research: Broadband CPE and Home Networking Vendors Make Push towards Premium Services; ZTE Surges

Market research firm Infonetics Research today released vendor market share standings and market forecasts from two third quarter (3Q11) broadband access reports, Broadband CPE and Subscribers: PON, FTTH, Cable, and DSL and Home Networking Devices, excerpts from which follow.

ANALYST NOTE

“As we mentioned earlier, we expect the global wireline broadband CPE market to peak in 2011 due to a surge of infrastructure investments this year by service providers, especially in emerging markets,” notes Jeff Heynen, directing analyst for broadband access and video at Infonetics Research. “With a bulk of the groundwork laid, service providers will shift their focus to turning up services in subscribers’ homes. In fact, we’re already seeing steady growth in wideband cable CPE and fiber-to-the-home CPE, particularly in China, a clear trend that operators are investing in the next generation of broadband technology for the home. The shift away from basic modems to high-end devices, such as VDSL gateways, VDSL IADs, wideband cable gateways and wideband EMTAs, reflects the fact that operators are preparing consumer homes with enough processing power to handle premium services, from high definition video to home automation and home security.”

BROADBAND CPE MARKET HIGHLIGHTS

• ZTE held on to its #1 spot for broadband CPE revenue and shipments in 3Q11, helped by its partnership with China Telecom to deliver Ethernet FTTH infrastructure and CPE for higher-end residential complexes in Shanghai, leading to a surge in Ethernet FTTH ONT shipments this quarter
• Motorola and Huawei tied for 2^nd for overall broadband CPE revenue, followed by Technicolor and ARRIS
• Global broadband CPE revenue held steady (up 1%) in 3Q11 over 2Q11, with FTTH CPE revenue up 16%, cable CPE up 2%, and DSL CPE down 6%
• Year-over-year, global FTTH CPE revenue is up 36%, cable CPE is up 18% and DSL CPE is up 4%
• ZTE also took the top spot in the highly-competitive FTTH CPE market from Huawei in 3Q11, and held onto the top spot in DSL revenue as well, thanks to the strength of ADSL gateway sales in China, EMEA, and Latin America
• Despite a 7% worldwide decline in cable CPE revenue, Motorola held onto the top spot in cable CPE

BROADBAND CPE REPORT SYNOPSIS

Infonetics’ quarterly broadband CPE report provides worldwide and regional market size, vendor market share, analysis, and forecasts for DSL CPE; standard and wideband cable CPE; FTTH ONTs and gateways, residential gateways; and voice CPE. The report also tracks and analyzes PON and Ethernet FTTH port counts and broadband subscribers (cable, DSL, PON, PON FTTH, Ethernet FTTH, and FTTB + LAN subscribers). Companies tracked: Alcatel-Lucent, ARRIS, AVM, Cisco (Linksys, Scientific Atlanta), Comtrend, D-Link, Gemtek, Huawei, Motorola, NETGEAR, Pace, Sagemcom, SMC, Sphairon, Sumitomo, Telsey, Technicolor, TP-LINK, Ubee Interactive, Zhone, ZTE, ZyXEL, others.

HOME NETWORKING DEVICE MARKET HIGHLIGHTS

• The global home networking device market totaled $1.8 billion in 3Q11, down 2% from 2Q11 as seasonal softness hit nearly all market segments
• Year-over-year, home networking device sales are up 10% worldwide
• Asia Pacific is the only region that posted a sequential revenue gain for home networking devices (up 6%), driven by a 9% revenue increase in broadband routers and a 16% rise in HomePlug powerline adapters
• In the highly competitive broadband router segment (up 19% from the year-ago quarter), D-Link extended its revenue share lead in 3Q11 after expanding its marketing presence outside North America and Asia; NETGEAR and Cisco follow in 2^nd and 3^rd respectively

HOME NETWORK DEVICES REPORT SYNOPSIS

Infonetics’ quarterly home networking report provides worldwide and regional market size, vendor market share, analysis, and forecasts for residential gateways (broadband gateways and multiservice gateways), WiFi broadband routers, wired broadband routers, HomePlug powerline adapters, MoCA coax-Ethernet adapters, and home NAS appliances. Companies tracked: Actiontec, Belkin, Cisco, Devolo, D-Link, Drobo, Gemtek, LaCie, LEA, Motorola, NETGEAR, QNAP, Sagemcom, TP-LINK, TRENDNet, Western Digital, others.

RELATED RESEARCH

• Fixed broadband access equipment market set to peak in 2011
• Cable broadband equipment market up 14% from year-ago quarter; Cisco gains
• Telecom capex up 6% to $311B in 2011, revenue up 8% to $1.86T, driven by mobile broadband
• Operators looking at next gen FTTH technologies will wait for prices to drop
• GPON equipment investment in Europe, India and Middle East far outpaces subscribers
• High speed network port market to hit $52 billion in 2015 (1G, 10G, 40G, 100G)
• Residential gateway survey shows strong support for IPTV; Comtrend, Cisco top vendor list

RECENT / UPCOMING MARKET FORECASTS AND SURVEYS

Download Infonetics report highlights, prospectuses, tables of contents, etc. from the BROADBAND ACCESS tab on the Infonetics service portal (http://www.infonetics.com/login).

• Fundamental Telecom/Datacom Market Drivers Report (Dec. 13)
• Total Broadband Equipment, CPE, and Subscribers Pivot (Dec. 15)
• Total Broadband CPE, Home Networking, and Subscribers Pivot (Dec. 16)
• Home Automation Service Strategies: Global Service Provider Survey (Dec. 16)
• Next Gen PON, FTTH, & VDSL Deployment Strategies: Global Service Provider Survey (2012)
• Residential Gateway Deployment Strategies: Global Service Provider Survey (2012)

SALES

• Larry Howard, VP, Western NA, Asia, CALA: larry@infonetics.com, +1-408-583-3335
• Scott Coyne, Eastern NA, Texas, Midwest: scott@infonetics.com, +1-408-583-3395
• George Stojsavljevic, EMEA: george@infonetics.com, +44-755-488-1623
• Japan, Taiwan, Korea: http://www.infonetics.com/contact.asp

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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