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Report: Broadband equipment market still booming

August 31, 2006 By Brian Santo, CED

Though there is evidence suggesting the U.S. broadband market may slow sooner rather than later, the global appetite for broadband is nowhere near sated, and equipment makers continue to reap the benefits.

Worldwide broadband CPE sales increased 5% to $1.4 billion from the first quarter to the second quarter of 2006, according to Infonetics Research.

DSL aggregation hardware sales increased 14% to $1.8 billion, and though CMTS sales dropped 18% to $211 million, the drop could have been expected after an unusually profitable first quarter. Compared to a year ago, CMTS revenue is up 15%.

CMTS sales are expected to continue to grow through 2009, driven in part by the rollout of VoIP.

Specific highlights from Infonetics’ research includes:
 
* Though the overall quarter saw a decrease in worldwide CMTS revenue, port shipments increased, showing that cable operators continue to build out broadband networks in response to the competitive threat they feel from telco PON FTTH and DSL deployments.

* Cisco, ARRIS and Motorola  (in 1st, 2nd, and 3rd positions for worldwide CMTS revenue, respectively) captured 96% of worldwide CMTS market revenue.

* The number of worldwide cable broadband subscribers is forecast to reach 71 million in 2009.

“This quarter’s growth in DSL port and broadband CPE unit shipments is proof that the race to build out broadband access networks and sign up subscribers continues unabated,” said Jeff Heynen, directing analyst for broadband and IPTV at Infonetics Research.

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