Traditional telcos and cable operators, including AT&T (NYSE: T), Verizon (NYSE: VZ) and Comcast (Nasdaq: CMCSA) continue to see triple play service bundles as a way to keep customers from churning and driving up ARPU (average revenue per user).
According to a new Digital TV Research report, triple-play subscription revenues will reach $144 billion in 2018, up $80 billion from 2012. Triple play revenues will make up 70 percent of total subscription revenues by 2018, up from 52 percent in 2012 and 36 percent in 2008.
Overall service bundles will drive up total subscription revenues 65 percent from $124 billion in 2012 to $205 billion in 2018.
Growth rates vary by region. The United States will account for only 42 percent of the global triple play revenues by 2018, down from 59 percent in 2008.
During Q3 2013 both AT&T and Verizon reported strong uptick in overall wireline subscriber ARPU. AT&T reported that consumer ARPU for U-verse triple play customers continues to be more than $170 a month, while Verizon's ARPU rose 8.7 percent to $112.86.
Despite their gains, Digital TV said that cable will continue to remain a strong competitor by contributing "nearly two-thirds of triple-play subscribers by 2018." While triple-play penetration will be higher DSL and fiber homes (71 percent by 2018) than in cable homes (42 percent), cable will double from 18 percent in 2012.
Taking a solid second place to the U.S. is China, which the research firm forecasts will have 115 million triple-play subscribers by 2018, or 34 percent of the global total.
- see the release
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