The total number of households worldwide with service provider-deployed residential gateways for connected home applications will grow to more than 70 million by 2013, according to a new report by Parks Associates, a Dallas-based market research and consulting firm.

Titled “Networks in the Home: The Global Service Provider Play,” the report examines the role of home networking and managed services in helping service providers monetize their access networks. The report also discusses consumer appetite for new services, the economics of managed services, and key residential gateway and home networking technologies.

“Service providers worldwide are scrambling to add value to broadband, communications, and other services,” says Kurt Scherf, Parks Associates’ vice president and principal analyst. “Connected home strategies are focusing on advanced customer premises equipment and related services that provide significant enhancements to both subscribers and service providers. As 2008 International CES demonstrated, home networking products aimed at the service provider community are growing in sophistication as carriers seek to enhance the features and applications available to their subscribers.”

Scherf suggests the strategy for residential gateway and other CPE deployments starts with value-added features such as multiroom DVR and streaming multimedia applications, enhanced communications features and home monitoring. He also says service providers are finding that the deployment of remotely manageable customer premises equipment provides significant benefits in reduced customer support costs and the opportunity to up-sell subscribers on digital home support services.

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