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Home Broadband Gear Sales Jump 20% in 2005: Report

The market for broadband home equipment has grown by nearly 20% this year, driven by demand for wireless and VoIP equipment and a major increase in broadband subscribers, reports In-Stat.

The firm also found that broadband Customer Premises Equipment (CPE) sales, composed of devices including broadband modems and home-networking gear, is transitioning from being dominated by modems toward a heavier focus on gateways.

"Broadband service providers are behind this transition, as they believe that it is necessary to deliver more advanced services. This transition will enable service providers to provide a back-end managed home network and add opportunities for additional revenue," Joyce Putscher, an In-Stat analyst, said in a statement.

The report found that consumers are trying out VoIP in order to save money on phone bills. Although gateways are one-box purchases unlike two-box purchases for modem/router combinations, broadband CPE unit growth will still increase over the next five years, the report concludes.