Point Topic: Consumers tune into value-added broadband services

If there's anything that Point Topic's latest broadband report illustrates, it's that consumers are finding utility in new services like IPTV, VoIP and online security.

According to Point Topic's annual Consumer Broadband Value Added Services report, broadband value-added services grew 30 percent, from $39.6 billion to $48.9 billion, in 2009. At a time when broadband growth has declined for a number of the major telcos and cable operators, 2009's were above the 14 percent growth, from 366 million to 417 million, during the period between Q408 to Q409.

Point Topic Consumer BVAS revenue 2003-2009

Consumer BVAS revenue 2003-2009 (US$ billions) - SOURCE: Point Topic

While broadband line growth may have slowed in recent years, new IP-based services that run on those lines are growing. Not surprisingly, the leading add-on services were IP Telephony, security, online gaming, IPTV and online music. However, IP telephony surpassed security as the major revenue service generator in 2009.

John Bosnell, Senior Analyst at Point Topic said that operators are combating the reduction of broadband margins and "pressure from competitors" with bundled service packages. He added that bundles "help operators retain customers and increase revenues, so the importance of value-added services to operators' revenue stream increases."

For more:
- see the release here
- Connected Planet also has this article

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