Posted: 12th Jul, 2010 By: MarkJ

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Multimedia Research Group (MRG) has estimated that broadband TV ( IPTV ) services and subscribers, such as BT Vision in the UK, will reach 102 million in 2014, a 25% Compound Annual Growth Rate (CAGR). Robust broadband and IPTV investments have been driving growth as a means to meet and outperform Cable Modem ( Virgin Media ) and Satellite ( Sky Broadband ) competition.
IPTV Operators are using fibre optic lines in high-competition markets and advanced DSL, such as channel bonding and VDSL2 ( FTTC ), in other (less competitive) markets. As a result, Telcos have been discreetly improving their bandwidth capacity to sub-markets that need upgrades without overspending in markets that don’t require immediate upgrading.
Jose Alvear, IPTV Analyst with MRG, said:
"As late as 2007, Eastern Europe had only a few IPTV trials or startups. Now, there are 16 fully operating IPTV Operators and another 3-6 in trial.
These Operators continue to grow their service base, because they have much greater technical and creative control over their service than their Cable competition."
MRG predicts that by 2014, Europe will have 45% of the global market, Asia 31%, North America 19% and ROW about 5%. High Average Revenue Per User (ARPU) rates still favour Europe and USA IPTV markets, with the largest service and systems revenues also coming from these regions.
Despite many obstacles and competition, 23 IPTV providers (mostly in Asia and Europe) will have exceeded the million-subscriber mark by 2014. We expect it will take awhile for the UK to catch-up because the crucial Project Canvas service will need another year to complete. It will take another year after that before operators, such as BT Group, have deployed enough fibre optic lines for good quality IPTV alternatives to take shape.