Jeff Heynen Infonetics - Residential Gateway Requirements for the Broadband Home

Residential Gateway Requirements for the

Broadband HomeTuesday 27th September 2011

Jeff Heynen

Directing Analyst, Broadband and Video

Infonetics Research

Copyright © 2011 Infonetics Research, Inc.

Broadband Home Trends

• Premium broadband services growing, replacing baseline ADSL, cable, and dial-up

• IP video to multiple devices driving bulk of residential traffic

• Demand for latency-sensitive, sustained applications increasing

• Operators increasing bandwidth at no charge; great for consumers, not great for business

– Pressure on operators to increase number of services offered as bandwidth to the home becomes commoditized


Broadband subscribers will continue to grow

• Growth in fixed broadband subscribers expected up 11% in CY11

– Total expected to hit 741M by 2015

• Most growth expected in China, CALA, Eastern Europe, and Russia

• PON FTTH, VDSL, and wideband cable to see the highest growth rates

Source: Infonetics Research, Fixed and Mobile Subscribers Market Size and Forecast, April 2011

Wireline Broadband Subscribers

by Category

0

100

200

300

400

500

600

700

800

CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15

Mil

lio

ns

FTTB+LAN

VDSL/VDSL2

G.SHDSL

ADSL/ADSL2+

Wideband cable broadband

Standard cable broadband

PON FTTH

Ethernet FTTH

xDSL

Region (All) Technology (All)

Number of Subscribers

Year

Subscriber Type


RG growth follows premium subscribers

• Currently strong growth in NA and EMEA from multi-screen services and transition from ADSL and standard cable

• Long-term growth will be driven by emerging markets as NA and EMEA mature

Source: Infonetics Research, Broadband CPE and Subscribers Market Share, Size, and Forecast 2Q11, September 2011

Residential Gateway Units

0

10

20

30

40

50

60

70

80

90

100

CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15

Mil

lio

ns

Multiservice gateways / Voice CPE

Broadband gateways

Frequency Annual Region (All) Residential Gateways Residential gateways Metric Units

Units

Period

Residential Gateway Type


Bundled services offered today and tomorrow

• Most operators still

bundling very basic

services: BB, voice, etc.

• Most layering IPTV, home

security, home automation,

other services

• More services = more

loyalty = reduced churn

• More services helps to

offset revenue sacrifice to

provide more bandwidth

Source: Infonetics Research, Residential Gateways Deployment Strategies: Global Service Provider Survey, April 2011

0%

0%

0%

13%

7%

20%

40%

27%

60%

73%

73%

100%

13%

20%

27%

33%

47%

47%

53%

73%

73%

100%

100%

13%

0% 20% 40% 60% 80% 100%

Mobile broadband

Home automation

Femtocell

Third-party video

Multiscreen video

Home security

Mobile voice

WiFi hotspot access

VoIP

TDM voice

IPTV

Broadband data

Serv

ices

Percent of Respondents

2012

Now


Throughput and versatility are critical

• Interface expectations

closely match service

expectations (e.g. Zigbee

and home automation)

• HomePNA and HomePlug

growing while MoCA

remains limited to North

America

• RG vendors must manage

costs of inventory amidst

growing gateway

complexity


0%

0%

0%

7%

0%

0%

7%

7%

7%

7%

0%

7%

13%

13%

27%

53%

40%

100%

7%

13%

13%

13%

13%

13%

13%

20%

20%

20%

27%

47%

67%

87%

93%

7%

7%

7%

0% 20% 40% 60% 80% 100%

SATA (integrated hard drive)

MoCA

Display (network diagnostics,

home control, etc.)

WiGig

Z-Wave

Zigbee

WirelessHD

HomePlug

eSATA (for external

hard drives)

802.11n dual radio

G.hn (HomeGrid)

USB 3.0

USB 2.0

Coaxial output (for

RF overlay video)

HPNA

802.11n

Gigabit Ethernet

10/100M Ethernet

Inte

rfaces

Percent of Respondents

2012

Now


Operators want advanced features

• Operators want to manage

and monitor these devices;

RGs are critical customer

interface

• RGs must provide both

subscriber and network

protection

• With DLNA, operators are

taking a step towards

becoming whole-home

network managers


7%

7%

13%

13%

27%

27%

33%

33%

40%

40%

40%

47%

53%

67%

73%

80%

0%

0% 20% 40% 60% 80%

Android

OpenRG

Femtocell

OSGi

IPSec

Stateful packet inspection

Dynamic QoS

DoS protection

DLNA

Content fi ltering/

parental controls

TR-069 management

Intrusion detection

VPN

Firewall

IGMP

IPv6

Remote access

Featu

res

Percent of Respondents Rating 6 or 7


The net result: ultra broadband home gateway

• High routing throughput (200Mbps-1Gbps)

• Minimum 4 GigE LAN connections

• Up to 4 RJ11 ports

• 1-2 USB 2.0 ports

• High performance control processor to run OSGi, Android, other RG software stacks

• Automatic checking of GPON/VDSL2/Ethernet connectivity and activation of corresponding MAC

• G.hn/MoCA/HPNA/HomePlug ports

• Room for Zigbee or Z-Wave

• Integrated SoC


The advanced RG is critical to broadband

revenue growth

• Operators view the RG as their logical demarcation point

• With RGs, operators can extend into home automation, security, and home network management

• Maintaining video quality will be the RG’s most critical feature

• Because of complexity, more operators are going directly to ODM manufacturers for advanced gateways


Q&A

• Questions?


Jeff HeynenDirecting Analyst, Broadband Access

+1 408.583.3359

[email protected]

http://twitter.com/JeffHeynen

www.infonetics.com

THANK YOU

mailto:[email protected]

http://twitter.com/JeffHeynen

http://www.infonetics.com/

Copyright © 2011 Infonetics Research, Inc. 12

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