Posted: 23rd Nov, 2011 By: MarkJ


The latest research from telecoms analyst firm Point Topic UK has revealed that value-added services (e.g. internet security , VoIP , IPTV etc.) accounted for an average of almost 37% of basic broadband subscription fees during 2010. As a result worldwide
Broadband Value-Added Services (BVAS) were estimated to have
generated £38.5 Billion ($60bn) at the end of 2010.
By comparison, total
global broadband internet access revenue increased from a run rate of £83bn ($129bn) at the end of 2009 to
£101bn ($157bn) at the end of 2010. This is based upon Point Topic's estimation that an average broadband sub (world) costs approximately £18 per month ($28).
John Bosnell, Senior Analyst at Point Topic, said:
"These results suggest a levelling in value-added services and demonstrate that broadband add-ons are not growing as fast as they were, despite continued growing revenues.
The trend we’ve observed since 2003 reflects the fact that more people are doing more things via their broadband connection. We estimate that at the end of 2010 each broadband line supported an average of 1.95 value-added services. That’s almost 4 times the average in 2003."
The results also suggest that
VoIP (Voice-over-IP) is the most valuable service to communication providers. VoIP revenues (excluding Skype's $859 million earned during 2010) ran at a rate of just over £11bn ($17bn) at the end of 2010, with 120 million VoIP subscribers (i.e. those where VoIP is a substitution for phone lines).
Point Topic cautions that the recent economic problems, which has caused some homes to cut back, could have an impact upon the figures for 2011 and produce a "
slight slowdown". Such an impact is predicted to be a short term problem.