Residential gateways to create new revenue streams

Residential gateways and home networks will open new revenue streams for service providers within the next four years, with deployments of residential gateways to account for over half of home network deployments by 2013, according to a new report from Parks Associates.

Service providers will start to see a quick return on investment, according to the report, and will be able to build new profits through residential gateway deployments. “At first, service providers deployed managed RGs to reduce expenses through auto-configuration and remote management,” said Kurt Scherf, Vice President and Principal Analyst at Parks Associates. “In the current phase of the connected home, subscribers are more interested – and more willing to pay for – value-added services such as enhanced technical support and data and media backup.”
Mr. Scherf added that providers should leverage the residential gateway to provide seemingly basic services that in the end will help customers to expand the value and utility of their networks: “Service providers have a great opportunity to put their brand on basic offerings that users instantly understand and appreciate,” he said. “Once providers make it easy for users to create connections among their PCs and CE, they’ll have a consumer base receptive to future offerings that include cross-platform media sharing and fixed-to-portable CE connections.”