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Summary:

Broadband gateways (a device designed for home networking that contains both a modem and a router) could help drive DSL penetration in the US, according to ABI Research. The driving force is DSL carriers willingness to allow consumers to share their wired installations, a strategy quite […]

Broadband gateways (a device designed for home networking that contains both a modem and a router) could help drive DSL penetration in the US, according to ABI Research. The driving force is DSL carriers willingness to allow consumers to share their wired installations, a strategy quite different from cable carriers.

bq. DSL service providers have embraced the retail model, giving the burden and the choice of CPE (customer premise equipment) to the consumer. Such practices by DSL providers are predominant in regions other than North America, observes ABI Research. ABI Research believes that, long term, the failure of cable service providers to successfully embrace the retail model will hurt their penetration rates, enabling DSL broadband subscriptions to overtake broadband cable subscriptions.

Sales of broadband gateways, at over $290 million in 2003, are expected to climb to over $1.53 billion by 2008 worldwide, according to ABI Research’s new study, “Broadband Residential Gateways:  Opportunities in Home Networking for Semiconductor & CPE Vendors.”

  1. Telcos have consistently failed to see the opportunity around CPE in the home.

    Cablecos have much longer experience with this — in many cases, cable boxes have always been required to deliver service.

    Once you have a foothold in someone’s home, that is an opportunity to start delivering other services. Of course, in-home distribution is a whole other ball of wax, but hopefully we’ve got UWB for that.

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  2. Cable companies woke up a while ago and are marketing their own CableHome gateways which integrate the router and cable modem (and – one day they hope – additional $ervices).

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  3. David Isenberg Wednesday, March 24, 2004

    huh? Om, I love your blog but this post is way off base. I think this analyst has spent too much time in a coffeehouse in amsterdam. Certainly in the US, the cable operators have embraced the retail model to a much greater extent than the ‘BOCs. Can you go to Best Buy and purchase DSL service today? Nope. And several of the largest cable operators, Comcast and Cox have formal home networking services with an integrated gateway. I don’t see that from Verizon, BellSouth or other DSL providers. Sounds like the Cable guys get it to me.

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  4. At least Verizon sells routers on their website and so presumably will support them. On the other hand “AT&T DSL Service does not support the use of the Service through multiple computers.” I wonder how AT&T DSL service and their VoIP service will coexist.

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  5. Just a quick clarification on DSL Providers and deployed gateways. The leading DSL Providers, do in fact, offer integrated gateways and home networking services to consumers at a minimum charge. I work for 2Wire and we have over 1 million gateways deployed solely through DSL Providers. In addition, all of these providers offer enhanced services through our gateways (eg parental controls, remote access, enhanced firewall, etc). By deploying intelligent gateways the DSL Providers are well positioned to offer expanded services in data, voice, and media.

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