Bundling to Boost Residential-Gateway Sector

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High-end bundled services will open an extremely lucrative door for the
residential-gateway sector as the equipment evolves to share much more than just
high-speed-data connections, Allied Business Intelligence Inc. said in a new

ABI said that trend will fuel the gateway-equipment market, which the firm
predicts will grow from last year's sales of $267 million to $7.1 billion by

Residential gateways, which can be located inside or outside of the home, tap
high-speed connections and share bandwidth and applications with several other
devices such as PCs, televisions, Web pads and personal digital assistants.

'High-speed Internet access by itself represents only the starting point for
the delivery of multiple services over broadband networks, which will eventually
encompass IP [Internet protocol] telephony, video services and control-oriented
applications,' ABI vice president of residential and networking technologies
Navin Sabharwal said.

ABI said North America will drive much of the sector's early growth,
representing about 74 percent of all shipments last year. That was due to higher
multiple-PC penetrations and higher broadband adoption in the region, the
company added. As Europe and Asia join the mix, ABI expects North America's
share to drop to 44 percent by 2006.

Although the 'residential' piece of residential gateway indicates home
consumer use, the equipment is also making waves in the commercial arena.

For instance, Comcast Corp.'s Comcast Business Communications said Tuesday
that it expanded an agreement with broadband-gateway supplier Cayman Systems

Under terms of the deal, CBC said it will offer Cayman's line of '2E'
gateways -- which feature a dual-Ethernet firewall/router with an integrated
eight-port hub -- as well as its new '2EH-W11' product, which supports the
802.11b wireless-networking protocol.