Broadband Revenue Doubled In 2005, Led By DSL: Report

Revenues from broadband customer premise equipment (CPE) sales grew dramatically in 2005, driven by an expanding market as enterprises deployed broadband for company connectivity and service providers offered triple-play bundles.

According to a new report from Infonetics Research, worldwide broadband CPE revenues grew 123% last year, to reach $4.9 billion, while shipments rose 64% to 115 million units. The growth curve is likely to continue for the near future, with Infonetics predicting that revenues will reach $6.5 billion by 2009. Digital subscriber line (DSL) showed particularly strong growth, with the number of subscribers rising 27% to reach 125.5 million worldwide in 2005. Infonetics expects the DSL subscriber to expand 96% by 2009, when it will reach 245.4 million.

Embedded multimedia terminal adapter (EMTA) and ADSL integrated access device (IAD) sales took off inn the fourth quarter of last year, following an already-impressive third quarter. Worldwide revenues from EMTA sales rose 31%, to reach $143.9 million, while ADSL IAD revenues grew 42% to $95.7 million in the last quarter of 2005.

"The healthy growth of ADSL IADs and EMTAs this quarter points to the increasing penetration of broadband voice among DSL and cable broadband subscribers," Infonetics Research directing analyst Jeff Heynen said in a statement. "The consolidation of multiple capabilities into CPE that ensures the delivery of more revenue-generating services while simplifying the subscriber's desktop and, ultimately, living room, is in full swing."