By: MarkJ - 05 September, 2007 (2:05 PM)
Point-Topic's latest research has reported that the market for consumer broadband value-added services (BVAS) grew by 81% during 2006. Such services usually comprise of things like Internet TV (IPTV), security, voice-over-IP (
VoIP) and so forth:
Altogether, consumer BVAS brought in more than 25% as much revenue as basic broadband access during 2006. Telephone (Voice over IP,
VoIP) and TV services (IPTV) and online gaming all did well.
The run-rate for consumer BVAS revenues increased by almost 81% during 2006, from $11.9 billion at the start of the year to $21.6 billion at the end of the year. This was steeper than the growth rate for the number of consumer broadband lines (34% to 246 million) or the run-rate of broadband access revenues (32% to $71 billion) during 2006.
Report author John Bosnell, Senior Analyst at Point Topic, said ‘
Value added services are making an increasingly valuable contribution to overall broadband revenues. Our research shows that broadband value-added services were contributing an extra 30% to basic access revenues by the end of 2006.’
That figure compares with a contribution of 22% at the beginning of the year, 18% at the start of 2005 and 10% at the start of 2004.
In value terms, the top five contributing services in 2006 were as follows:
No. Service (market share)1. Security (28%)
2. IP Telephony /
VoIP (27%)
3. Gaming online (17%)
4. Home networks (13%)
5. Music (9%)
The dominance of voice and security services clearly shows how important it is for UK ISP's to have a related presence in such areas.
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