Broadband gateways good for DSL

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.”


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