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IPTV revenues to overtake VoIP by 2020

Consumer value-added services are set to triple for the telecoms industry from US$ 125bn worldwide in 2011 to US$ 420bn in 2020, with current top earner VoIP to be trumped by IPTV during the period, according to UK research firm Point Topic.

Value-added services are critical to provider revenues worldwide, the report adds: as competition reduces margins in the basic broadband business, and with increasing penetration of broadband value-added services, their contribution to revenues is becoming increasingly more important.

“Development may be harder for some markets than other,” cautions Oliver Johnson, CEO of Point Topic. “For example, security already has a penetration rate of over 85%, so being able to grow this further will depend on developing other security related services, or on the advent of a virulent and destructive online threat.”

Access revenues from subscriptions charged for a broadband service are similarly a tough area to grow revenue, the report adds, especially as saturation permeates through more and more markets.

Offering the right bundles for their consumers in a particular market, signing the right deals and maintaining a customer base in the face of global competition is predicted to be the mark of a successful ISP in the next few years.

“Challenges lie ahead for all and the internet can be fickle, but the right player with the right service, or more likely set of services, has the chance to sweep all before them,” concludes Mr Johnson.

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