The broadband CPE market grew 5 percent to $2.9 billion in Q2 2015 from the previous quarter, while unit shipments rose 11 percent to 61 million.

Broadband CPE revenue increased 7 percent from under $2.7 billion in Q2 2014.

Broadband customer premises equipment (CPE) market includes DSL, cable, fiber-to-the-home (FTTH), residential gateways and mobile broadband CPE.

DSL CPE unit shipments fell 1 percent to 23 million in Q2 2015 on quarter on quarter basis, with VDSL IADs posting 11 percent increase.

Cable CPE units rose 1 percent to 11.6 million quarter on quarter basis. 90 percent of Cable CPE units was WiFi-enabled. DOCSIS 3.0 modems posted 13 percent growth.

Fixed LTE CPE shipments grew 4 percent.

FTTH optical network terminals (ONTs) unit shipments more than doubled year-over-year from 9.8 million to over 20 million in China.

IHS increased its 2019 worldwide broadband CPE forecast by 8 percent to $12.4 billion.

“The primary source for raising our broadband CPE forecast is the massive investment currently ongoing in China. Despite reported economic headwinds, the Chinese government continues to subsidize telecom 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 shift from fiber-to-the-building (FTTB) to FTTH architecture is well underway in China. A primary reason for this architectural shift is that FTTB plus ADSL take-rates at China Telecom have been disappointing.

The IHS report said consumers aren’t interested in a connection that offers only a marginal improvement over what they already have. “If they are to subscribe to a home broadband service, it needs to provide a minimum of 8MB to 10MB speeds,” Heynen said.

Baburajan K
[email protected]