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Broadband Service Providers to Deploy 120 Million Gateways and Routers in 2017

Broadband providers, driven by subscriber adoption of connected CE and the need for new revenues, will deploy over 120 million routers and residential gateways (RGs) worldwide in 2017, achieving a cumulative annual growth rate (CAGR) of 9.5% from 2012, according to research firm Parks Associates.

"Residential Gateway Trends: Bringing Value Home," a new Parks Associates whitepaper sponsored by Jungo, notes the average U.S. broadband household has approximately four TVs and TV-connected devices, three mobile/portable devices, and 2.5 computing devices. Consumer adoption of connected CE will continue in 2013, with over 17 million smart TVs to be sold in North America in 2013.

"Gateways are important tools for providers in dealing with the increasing complexity in the connected home," said Brett Sappington, director, research, Parks Associates. "Consumers are adding many new connected devices to the home, and they expect these devices to interact. The gateway's hardware and software capabilities help manage the home network and contribute to increased consumer satisfaction and service stickiness. Operators can also use RGs with advanced software solutions to introduce new services quickly and thus derive new revenues."

The whitepaper analyzes the central role of residential gateways in the connected home. It also defines different levels of RGs and discusses market trends driving deployment and design of RGs, including the need for differentiation through software.

"Our research shows multiscreen services and home automation top the list of value-added services of interest to broadband service providers," Sappington said. "High-end gateways allow providers to deploy these services now and give the flexibility to adapt to future needs, including improved video streaming and cloud-based services."

From the article, "Broadband Service Providers to Deploy 120 Million Gateways and Routers in 2017."

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