Integrated Broadband Services to Drive Residential Gateway Market Emerging Device Class to hit $5 Billion by 2005

SCOTTSDALE, Ariz., December 14, 2000 - Rapid implementation of integrated voice, video, and data services along with home networking and other value-added services, will create an explosive market for residential gateways (RGs) over the next several years, according to Cahners In-Stat Group ( www.instat.com ). The high-tech market research firm predicts the RG market will rise sharply from $100 million in 2000 to $5 billion in 2005.

Residential gateways, an emerging device class that enables the interconnection the Internet with the home network, will unleash the delivery of new value added services to the home user. "The residential gateway is the waterfront property of the digitally connected home of the future," stated Mike Wolf, Director of Enterprise and Residential Communications for Cahners In-Stat Group and author of the study. "This strategic arbiter of broadband service delivery will ultimately help decide the winners in the connected home of the future."

RGs will evolve over the next few years from devices that provide basic broadband access to complex integrated services gateways enabling remote management and value-added services such as home security control and video-on-demand. From a market that didn't really exist in 1999, the beginning of 2001 will see actual products shipping by many different industries. This rapid emergence of the RG will continue throughout the forecast period.

Drivers for the residential gateway market include:

* The supply of broadband connectivity becoming pervasive * Service providers looking to value added services for increased differentiation * Continued convergence - as well as divergence - of technologies in the home creating many different devices classes, all of which may be connected in the future through some form of residential gateway

"The market for residential gateways will extend across geographies," said Wolf. "All the major markets are seeing a move towards delivering more value to the end user, and the residential gateway will play a major roll in this."

The report, "Residential Gateways: Unleashing the Broadband Services Tsunami" (#RC0011HN), builds on Cahners In-Stat's leadership position in helping to define the residential gateway and connected home markets. The report includes forecasts of the Residential Gateway Market by type and with regional breakdowns. The report also features an overview of RG technology, a look at how the devices work with WAN infrastructures, RG standards, and market drivers and hurdles. It includes an examination of consumer buying habits and profiles of RG vendors.

To purchase this report, or for more information, please call Courtney McEuen at 480-609-4533 or email at cmceuen@instat.com . Cahners In-Stat Group (< http://www.instat.com/ >) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.