It’s no wonder that service providers are struggling with the legacy plant to deploy IPTV quickly. There’s a big chunk of money involved!

According to a new report by Infonetics Research, the residential services market is forecast to reach $300 billion by 2013, fueled by broadband and video services.

The new market share and forecast report Residential Voice, Data, and Video Services in North America: Market Outlook says the revenue derived by North American service providers for residential voice, video, and Internet access services hit $261 billion in 2008 and is expected to grow to $300 billion by 2013. (See Figure 1.)

Figure 1. Service Provider Revenue Forecast.

“With hundreds of service providers marketing services to residential voice, data, and video consumers, the market is dominated by AT&T, Verizon, and Comcast in the U.S., and Bell Canada and Rogers in Canada. AT&T is the market leader with 17% of total services revenue. With the residential services market forecast to reach $300 billion by 2013, fueled by broadband and video services, we are expecting a hard-fought battle between the ILECs and the cable operators,” observes Diane Myers, Infonetics Research’s directing analyst for service provider VoIP and IMS.

Highlights from the report show the struggle may pay off in the near-term:
• Broadband access represents the true growth engine for residential services, with North American revenue growing at a 13% average annual rate from 2008 to 2013.

• Comcast and DirecTV are in a tight battle in the residential video services segment, with Comcast holding on to the lead in 2008 by just 2 points.

• Through its FiOS service, Verizon captures the majority of North American IPTV subscribers (54%) in 2008.

• In 2008, wireline Internet access (e.g., dial-up, cable broadband, DSL, FTTH) had 64% household penetration in North America.

• Revenue derived by service providers and cable companies for IPTV, cable video, and satellite video services is forecast to grow to $142 million in 2013 in North America.

• The percentage of North American households with traditional phone lines (PSTN voice service) is forecast to drop from 69% in 2007 to just 26% by 2013, as consumers opt for mobile-only services or VoIP alternatives.

Source: www.infonetics.com

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