Broadband Goes Boom

Broadband boom, world wide continues. The latest data on sales of broadband modems, routers and gateways shows that slowly but surely we are all living an always-on connected life. Infonetics Research says that the revenue for broadband modems, routers, and gateways totaled $4.6 billion in 2004, up 15% from 2003, and units totaled 73 million, up 74%. The increase in unit shipmets is far higher than the dollar figures, which shows two things – broadband is booming, and cost of equipment has nosedived making it very difficult for anyone but the Asians to make money in this high commoditized business. Projections reflect this trend in a more stark light. Unit shipments are projected to soar 191% to almost 200 million and revenue will grow 28% to $5.6 billion between 2004 and 2008. Data shows that world wide, DSL is the preferred medium of broadband access. D-Link leads the overall broadband modem, router, and gateway revenue leaderboard in 4Q04, just ahead of Thomson; Motorola claims third place, ahead of Cisco-Linksys and Siemens, which are tied for fourth spot. Notably, one time DSL modem leader Alcatel is not in the list, reflecting the fact, that Alcatel has wisely decided to move on from this money losing business.

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