Broadband Value-Added Services Making Important Contribution To Revenues

By the end of the year, value-added services were adding 42% to basic business broadband access revenues, up from 31% the previous year. Proportionately, therefore, business BVAS revenues make a larger contribution than consumer revenues. These added around 26% to basic consumer access revenues at the end of 2006.

Point Topic says that the run-rate of value-added revenues increased from $8.9 billion at the beginning of the year to $15.4 billion at year-end. This represents a growth of around 78%.

It remains the case that growth in business BVAS revenue is higher than the rate of growth in the number of business broadband lines. These grew from 26.5 million to 35.6 million during 2005, an increase of 34%.

Point Topic estimates that the additional revenue from security services was running at a rate of over $9 billion at the end of 2006.

Businesses are spending more money on value-added services than they did at the start of 2005. Average revenue per user (ARPU) increased from $26 at the start of 2005 to $32 at the end of the year.

In September, Point Topic published a report showing that the market for consumer broadband value-added services (BVAS) grew by 81% during 2006 (see Consumer BVAS revenues up 81% in 2006).

Meanwhile, the Office for National Statistics (ONS) revealed that the number of UK households connected to the internet has jumped by almost one million in the last year alone, to reach over 15 million (see Household Internet Connectivity Rises To Over 15 Million).