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Report: CPE Market Growing at Impressive Rate

September 30, 2015

A new report was just released which shows that the broadband customer premises equipment (CPE) market is only going to get stronger in the coming months and years. This market consists of DSL, cable, fiber-to-the-home (FTTH) and residential gateways, as well as mobile broadband CPE. The September report says that the most accurate forecasts of the value of the CPE market by the end of 2019 will go up by about eight percent to more than $12.4 billion.

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“The primary source for raising our global broadband CPE forecast is the massive investment currently ongoing in China. Despite reported economic headwinds, the Chinese government continues to subsidize telco investments in fiber infrastructure to expand accessibility and throughput. The result is heavy spending on GPON and EPON ONTs,” said Jeff Heynen, research director for broadband access and pay TV at IHS, the company that released this report.

IHS says that the biggest sector in the world when it comes to growth in this technology is going to be in China. It doesn’t come as a surprise that companies are looking to heavily monetize the CPE market. Some companies have even begun shaking up their management team.

In China, units shipped when talking about FTTH optical network terminals already doubled from one year to the next. Those numbers were sitting at 9.8 million in 2014, and now there are more than 20 million in 2015. Not only is the market growing year over year but its growing from one quarter to another. The broadband market actually grew from five percent from the pervious quarter to $2.9 billion. Unit shipments were able to get a boost of 11 percent. In total, the report says that broadband CPE revenue is up seven percent from the second quarter of last year.

Edited by Kyle Piscioniere

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