Broadband Modem Revenues On The Slide
Revenues from sales of broadband modems and gateways fell by 11% during 2002, as technology prices plummeted, according to research from Strategy Analytics.
However, SA says that prices will continue to decline and device manufacturers will have to budget for negative revenue growth in the years ahead. Efforts to introduce higher value gateway devices with integrated wireless networking and other technologies are not expected to stem the tide.
“The pressure on operators to reduce costs will continue to outweigh the need for more advanced consumer devices,” stated Peter King, Director of Global Broadband Practice at Strategy Analytics. “Intense competition between manufacturers to win contracts will ensure that price erosion continues for the foreseeable future.”
The study found that DSL took an increased share of the market in 2002. Some 62% of the broadband modems sold last year were DSL, up from 57% in 2001. Only a third were cable and it is anticipated that DSL will continue to dominated the market over the next five years. However there should be some growth in emerging platforms, such as fiber to the home (see FTTH Has A Long Way To Go, Says In-Stat/MDR), during this period.
| Broadband Modems & Gateways – Global Market Forecast | ||||||||
| 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | |
| Units | 17.3 | 26.3 | 33.6 | 40.0 | 45.6 | 50.4 | 55.0 | 60.4 |
| Growth Rate (%) | 59 | 52 | 28 | 19 | 14 | 11 | 9 | 10 |
| Source: Strategy Analytics, February 2003 | ||||||||
