Global Value Added Broadband Service Revenues Top £14.5bn
Posted: 03rd Sep, 2008 By: MarkJ
Point Topic reports that broadband value added services generated £14.52 ($25.7) billion worldwide in 2007, an increase of 62% on 2006, with Voice-over-IP (VoIP) being the most dominant:
56% of the service revenues generated worldwide come from the combination of voice over IP (VOIP) and security. They are followed, in order of global revenue generated, by online gaming, home networks, music downloads and video over broadband.
Point Topic splits VOIP into two segments, IP Telephony (VoIP provided by ISPs) and Internet Telephony, which includes services like Skype that route through the users PC.
Interestingly the average revenue per user (ARPU) is quite low on these services, although IP Telephony produces around 10 times as much revenue per user. VoIP as a whole is expected to continue its growth for at least the next few years, with Internet TV (IPTV) services being one of its closest companions.
Value added services are growing strongly and are increasingly significant in overall revenue terms, says John Bosnell, Senior Analyst at Point Topic. We estimate that value added services were 10% of total broadband revenues, which includes subscriptions, in 2003 but by the end of 2007 that has increased to over 30%. As it gets harder to make a profit in the hyper competitive line rental market the operators and suppliers have to look to add value, and revenue, with their service offerings, he continues.
56% of the service revenues generated worldwide come from the combination of voice over IP (VOIP) and security. They are followed, in order of global revenue generated, by online gaming, home networks, music downloads and video over broadband.
Point Topic splits VOIP into two segments, IP Telephony (VoIP provided by ISPs) and Internet Telephony, which includes services like Skype that route through the users PC.
Its difficult to measure active users of the Skype and its cousins, like the applications embedded in the popular instant messaging services, but our estimates put the worldwide number of active users at around 20 million, he continues.
Interestingly the average revenue per user (ARPU) is quite low on these services, although IP Telephony produces around 10 times as much revenue per user. VoIP as a whole is expected to continue its growth for at least the next few years, with Internet TV (IPTV) services being one of its closest companions.
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