Broadband Grows, Gear Doesn’t


Despite a growing demand for broadband, the equipment sales for all sorts of broadband gear will decline for near foreseeable future. Synergy Research Group forecasts that revenues of broadband gear is going to decrease 5.4 percent to $6.0 billion in 2005. By 2009, decreasing prices will cut the market to $5.2 billion annually, a CAGR of negative 3.4 percent. IMS Research forecasts nearly 400 million broadband users by end of 2009, up from 150 million at end of 2004. Asia is supposed to super charge the growth, primarily in new markets like China which are adopting DSL and its future variants quite aggressively.

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