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Value Added Broadband Services

Posted: 25th May, 2006 By: MarkJ
The latest Point Topic research has highlighted a 74% ($11.9 billion vs $6.9 billion in 2004) growth in consumer broadband value-added services (BVAS) during 2005:

The increase in value-added services revenues was steeper than the growth in the number of consumer broadband lines (49% increase to 183 million lines) or total broadband access revenues (29% increase to $54 billion) during the same period.

Therefore, by the beginning of 2006, value-added services were adding an extra 22% to access revenues. This compares with a contribution of 18% at the start of 2005 and 10% at the start of 2004. For the year 2005 as a whole, Point Topic estimates that consumer BVAS revenues were $9.1 billion, with access revenues of $47.8 billion.

In value terms, the top 5 contributions were, in order, security, IP telephony, online gaming, home networks and music downloads. Whilst security and home networks are support tools that enable the use of broadband, VoIP, gaming and music are all services that need broadband to work effectively. These results show that value-added services revenues are steadily increasing in relative importance, when compared with revenues from the supporting technologies and infrastructure of broadband.

[THE ABOVE CHART] shows how gaming, VoIP and music services have increased in relative importance during 2005, with home networking and security declining slightly in relative terms (although security grew strongly in absolute terms as the broadband market developed).


Curiously one of our recent news pieces highlighted a growth in home Wi-Fi networks, suggesting that the home networking decline may have already done a U-Turn for 2006.
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