Report: Next-gen CPE will shape the landscape for ISPs
August 26, 2025

A report commissioned by Irdeto, a specialist in digital platform cybersecurity, and developed by research firm Omdia, highlights the critical role of secure Customer Premises Equipment (CPE) in the future of digital services. Titled Secure CPE: Gateway to the Next Trillion Dollars, the paper explores how next-generation CPE will shape the competitive landscape for broadband service providers, creating opportunities for revenue growth beyond traditional connectivity.
The report is based on an in-depth analysis of nearly 200 global service providers and 20,000+ consumers and enterprise users, uncovering urgent gaps and transformational opportunities in how CPE is deployed, secured and monetised. With global broadband markets maturing and traditional growth avenues plateauing, secure CPE emerges not only as a fundamental requirement but also as a powerful enabler of new business models, revenue streams and customer value.
“We are standing at an inflection point where CPE is no longer just an endpoint device; it’s becoming the foundation of future service innovation,” said Andrew Bunten, COO of Video Entertainment at Irdeto. “This research validates what we’ve seen in the field: service providers must evolve from simply managing connectivity to delivering secure, personalised, value-added digital experiences. And CPE is at the heart of that shift.”
Key Findings and Industry Implications
Cybersecurity is the New Premium Offering
As smart homes and digital workplaces proliferate, demand for whole-home and enterprise-grade cybersecurity is soaring. The research shows that 77 per cent of consumers are willing to pay extra for robust cybersecurity protection – with parents and households with many connected devices among the most willing. In the B2B segment, cybersecurity is already the top revenue-generating value-added service (VAS), with a compound annual growth rate (CAGR) projected at 13.5 per cent through 2029 for SME-focused managed services.
CPE Management is Fragmented and Risky
Service providers cite aging devices, staff shortages and over-reliance on vendors as key challenges. Nearly 60 per cent report difficulties finding and retaining CPE security talent, while internal misalignment across teams further exacerbates risk. Without a coordinated strategy, providers leave both revenue and reputation vulnerable to disruption.
Open Standards Drive Agility and Differentiation
While 74 per cent of B2B providers have adopted open-source platforms for CPE management, only 45 per cent of consumer broadband teams have followed suit. Open standards enable faster onboarding of services, interoperability across ecosystems, and flexibility to deploy future innovations with minimal friction—key capabilities in a hyper-competitive, experience-driven market.
Secure CPE Enables Revenue Beyond Connectivity
Advanced CPE is critical to launching and scaling high-value services such as cybersecurity suites, smart home automation, energy management and QoS-enhanced applications. Providers who treat CPE as a platform—not just hardware—can increase ARPU, boost customer lifetime value and create compelling, differentiated offerings in both consumer and enterprise markets.
Succeeding in the Next Wave of Digital Transformation
To capitalise on the trillion-dollar opportunity, the white paper outlines four urgent priorities for the industry:
- Adopt a platform-centric approach to streamline management of increasingly diverse CPE ecosystems
- Standardise on open, flexible architectures to enable rapid integration of services and hardware
- Make CPE strategy a board-level priority, not an operational afterthought
- Build security into every layer, from physical access points to digital threat protection
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