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IPTV Set Top Box Forecast

Increasing deployments of TV services by telco operators are boosting the IP/DSL set top box market, reports In-Stat. As a result, shipments of IP/DSL set top boxes (STB) will grow from 1.7 million in 2004 to 16.9 million in 2009, the high-tech market research firm says. At that point, this market will surpass the digital cable set top box market in size.

Despite the market's great opportunities, In-Stat believes it cannot support the number of currently participating vendors. "There are over 80 vendors offering IP/DSL set top boxes today," says Michelle Abraham, In-Stat analyst. "That's too many vendors for a market of this size. Only about 25 of them have telco customers."

In-Stat found the following:

- Free was the top supplier of IP/DSL set top boxes in 2004.
- IP/DSL set top box Average Selling Prices (ASPs) are highest in the Americas due to the desire for DVR, HD, and multi-room boxes in North America.
- The greatest technology shift in IP/DSL set top boxes is the move to advanced video compression, which requires more memory and more powerful video decoders than MPEG-2.

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