Consumer BVAS revenues up 81% in 2006
The market for consumer broadband value-added services (BVAS) grew by 81% during 2006. With over $16 billion in revenues, consumer BVAS became increasingly essential to the financial success of broadband services, according to new research from Point Topic.
The run-rate for consumer BVAS revenues increased by almost 81% during 2006, from $11.9 billion at the start of the year to $21.6 billion at the end of the year. This was steeper than the growth rate for the number of consumer broadband lines (34% to 246 million) or the run-rate of broadband access revenues (32% to $71 billion) during 2006.
John Bosnell, report author and senior analyst at Point Topic, said: “Value added services are making an increasingly valuable contribution to overall broadband revenues. Our research shows that broadband value-added services were contributing an extra 30% to basic access revenues by the end of 2006.”
In value terms, the top five contributing services in 2006 were, in order, security, IP telephony, gaming online, home networks and music. IP Telephony, defined as full-service phone-over-broadband offerings, has now (August 2007) overtaken security to be the value added service that generates the greatest revenue.
Bosnell commented: “Taken together, just two services, IP Telephony and Security, account for 56% of total consumer BVAS revenues. That shows how important it is for ISPs to have a strong position in these areas.”
The latest figures from the Office of National Statistics revealed that 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)
Meanwhile, a report from iSuppli suggested that the market for IPTV video services will rise to $26.3 billion in 2011, up from $779.2 million in 2006 (see IPTV Video Revenue To Reach $26 Billion By 2011).