IPTV Grows for Telcos in Face of Economic Downturn
Carriers worldwide are looking to Internet Protocol Television (IPTV) in order to continue growing now that their revenues and subscribers from wireline voice services have dried up.
The good news is that the benefits of IPTV already are paying off during these tough times when the economy is struggling with a deep recession. IPTV withstood the economic storm reasonably well in the fourth quarter of 2008 and first quarter of 2009 and is on track to grow by 56 percent in 2009 to reach 33.3 million subscribers. This is up from 21.3 million subscribers worldwide in 2008.
By 2010, IPTV will register 52 million subscribers worldwide after growing another 56 percent that year. By 2013, the number of subscribers will double, reaching 115.6 million.
It isn’t a secret that with these huge numbers of subscribers signing on in the next five years, telcos are rapidly gearing up for IPTV and triple-play services, as well as working on how they can make them more attractive to current and future subscribers.
From a revenue perspective, IPTV revenues are growing even faster than subscribers thanks to increasing Average Revenue Per User (ARPU). Revenues are expected to increase to $58.2 billion by 2013, with a Compound Annual Growth Rate (CAGR) of 44.4 percent from just $9.3 billion in 2008.
Regional Growth Untapped
In the fourth quarter of 2008 and the first quarter of 2009, IPTV added 2.5 million and 2.3 million subscribers, respectively. This is impressive growth, given that these two quarters were considered to be the worst of the current downturn.
At the end of the first quarter of 2009, there were 21.4 million IPTV subscribers worldwide, with nearly half, 49 percent, located in Europe. Other regions, including North America and Asia/Pacific, are relatively far along in their IPTV deployment, but the subscriber growth opportunity is huge because these regions—including Europe—have an IPTV penetration of the telco broadband subscriber base of less than 15 percent. This means there are ample opportunities for telcos to expand their business for the next five years and beyond.
But the next great IPTV frontier may be in the emerging markets of Eastern Europe, India, Russia and Latin America, where penetration of IPTV of the telco broadband subscriber base is less than 1 percent. These regions will be slower to ramp up their subscribers due to limited broadband infrastructures and, in some case, regulatory issues.
The good news is that the benefits of IPTV already are paying off during these tough times when the economy is struggling with a deep recession. IPTV withstood the economic storm reasonably well in the fourth quarter of 2008 and first quarter of 2009 and is on track to grow by 56 percent in 2009 to reach 33.3 million subscribers. This is up from 21.3 million subscribers worldwide in 2008.
By 2010, IPTV will register 52 million subscribers worldwide after growing another 56 percent that year. By 2013, the number of subscribers will double, reaching 115.6 million.
It isn’t a secret that with these huge numbers of subscribers signing on in the next five years, telcos are rapidly gearing up for IPTV and triple-play services, as well as working on how they can make them more attractive to current and future subscribers.
From a revenue perspective, IPTV revenues are growing even faster than subscribers thanks to increasing Average Revenue Per User (ARPU). Revenues are expected to increase to $58.2 billion by 2013, with a Compound Annual Growth Rate (CAGR) of 44.4 percent from just $9.3 billion in 2008.
Regional Growth Untapped
In the fourth quarter of 2008 and the first quarter of 2009, IPTV added 2.5 million and 2.3 million subscribers, respectively. This is impressive growth, given that these two quarters were considered to be the worst of the current downturn.
At the end of the first quarter of 2009, there were 21.4 million IPTV subscribers worldwide, with nearly half, 49 percent, located in Europe. Other regions, including North America and Asia/Pacific, are relatively far along in their IPTV deployment, but the subscriber growth opportunity is huge because these regions—including Europe—have an IPTV penetration of the telco broadband subscriber base of less than 15 percent. This means there are ample opportunities for telcos to expand their business for the next five years and beyond.
But the next great IPTV frontier may be in the emerging markets of Eastern Europe, India, Russia and Latin America, where penetration of IPTV of the telco broadband subscriber base is less than 1 percent. These regions will be slower to ramp up their subscribers due to limited broadband infrastructures and, in some case, regulatory issues.
Posts
No comments: