Annual revenue from bundled services offering consumers different combinations of landline voice, high-speed internet, television or wireless voice services, is predicted to rocket, as providers realise the importance of the service for the long-term viability of their business models.
According to new research from Parks Associates, by 2010 more than half of broadband households in the US will subscribe to a triple-play or quadruple-play service, with annual revenue expected to reach $119.5 billion.
The Business of Bundled Services: Consumers, Models and Uptake report shows that, by the end of 2005, just 39% of US broadband households had subscribed to a bundled service, with the majority of them having a dual-play service.
Parks Associates asserts that if service providers adopt the right strategies, 55% of broadband households will subscribe to a triple-play or quadruple-play service by the end of the decade.
Deepa Iyer, research analyst at Parks Associates explained: “Service providers need to integrate different service features in a seamless way and build ‘experience-orientated’ packages that fit the distinctive needs and lifestyles of various consumer segments.’
The rise of triple-play offerings is a hot topic in the media industry, with forecasts from the Banc of America Securities revealing that cable operators are pushing ahead with their broadband offerings and taking advantage of the varying services they can offer (see Cable Providers Push Triple Play Offerings).
Digital subscriber lines (DSL) are also increasing their share of the broadband market, with the latest estimates from Point Topic revealing a total of at least 135 million lines worldwide by the end of 2005 (see Global Broadband Lines Up By 9% In Q3 2005).
Indeed, in the US alone, eMarketer expects broadband penetration to rise to over 124 million in 2006 and exceed 157 million in 2008, up from the current 105 million (see Top Trends Forecast For 2006).
The unstoppable pace of broadband has resulted in strong growth expected for Voice over Internet Protocol (VoIP) and Internet Protocol TV (IPTV).
High-tech market research firm, In-Stat predicts worldwide VoIP customers to reach over 55 million in 2009, up from 16 million at the end of 2005 (see VoIP To Reach 55 Million In 2009).
IPTV is also forecast to enjoy a healthy performance over the coming years, with Informa Telecoms & Media projecting the technology to reach 25.9 million subscriptions globally by the end of the decade, up from just 2.7 million last year (see IPTV To Reach 25.9 Million By 2010).
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