Value-Added Broadband Service Market Grows
Posted: 05th Sep, 2007 By: MarkJ
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:
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.
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.
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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