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Triple Play Broadband Bundles to Dominate a Quarter of World Homes by 2016

Posted: 19th Jul, 2011 By: MarkJ
triple play bundles 2016Digital TV Research, a UK based analyst firm, has released its latest Triple-Play Forecasts report (covering 73 countries) and estimated that more than a quarter of the world's households (387 million homes) will subscribe to a triple-play (3P) bundle of broadband, television (TV) and telephone services by 2016. That's up sharply (7.1%) from the 96 million recorded at the end 2010.

Superfast cable operators, such as Virgin Media UK, are expected to dominant world triple-play bundles and will be home to 258 million subscribers. By contrast DSL ( ADSL ) and fibre optic based ISPs will be home to just 129 million of the total.

This is partly because many cable operators started out life by offering a mix of service bundles, while DSL ISPs slowly gravitated towards it from standalone solutions and fibre optic ( FTTH ) services are still relatively new.

Furthermore, there will be 80 million dual-play (2P) subscribers (this is referenced as TV and broadband) by 2016, which is up from 32 million in 2010. Global 2P penetration will reach 5.4% by end-2016, up from 2.3% in 2010.

Report Author, Simon Murray, said:

"Rivalry for pay TV and broadband subscribers has never been so fierce – and it’s going to get even more competitive. Operators are pushing their bundled packages hard to attract new subscribers and to retain existing ones.

These operators are not just competing with each other, but they also have to deal with widespread take-up of digital terrestrial TV (with its channel choice often nearly replicating the basic pay offer) and over-the-top (OTT) internet-delivered video.

Furthermore, satellite TV providers are pushing newer services such as DVRs, HD and 3D to differentiate themselves from their fixed line counterparts.

The effect of all of this competition is reasonably-priced bundles, which increases overall [blended] ARPU for operators but lowers revenues from the component parts: TV, broadband and telephony. So operators will (and have already started to) reduce TV channel choice (sometimes to just what is offered on DTT) and will be more reluctant to pay carriage fees for basic channels. This will impact channels revenue streams. Furthermore, operators are providing faster broadband speeds as standard."

Apparently the Asia Pacific region will dominate triple-play subscriptions and account for 58% of the total by 2016, which is up from 35% in 2010. China alone is expected to supply 44% of global subscriptions by 2016.
Triple-Play Forecasts Report 2011 (PDF)
http://www.digitaltvresearch.com/ugc/press/14.pdf
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