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Global IPTV Equipment Revenue Forecast

According to newly released report from Dittberner Associates Inc. the incremental IPTV equipment market will only reach $336 Million in 2013 up from $30 Million in 2005. The number of IPTV subscribers, will reach 53 Million globally in 2013 from about 2 Million as of end of last year.

"Other studies on IPTV�s effect on network equipment market growth ignore the fact that most IPTV subscribers over the next seven years will be high-speed Internet access subscribers already," reports James Heath, Director, Broadband research at Dittberner. Heath added that "IPTV�s subscriber base will not become significant for a decade and the incremental investment per subscriber will be low. Combined together, these provide a small boost to forecasted DSL, FTTH, and router sales."

The report provided an in-depth appraisal of the impact of offering IPTV service on the Access, Aggregation and Backbone networks. The forecast for the incremental increase due to IPTV for these three market segments in 2013 is as follows:

Access Equipment Market
$115,176,000

Aggregation Equipment Market
$56,432,000

Backbone Equipment Market
$164,491,000

Total
$336,100,000

The report concluded that the size of the Access Equipment Market is greatly affected by the number of popular TV channels that are multicasted to the DSLAM, while the backbone market will be greatly affected by the popularity of Video-on-demand. Interestingly, the size of the Aggregation equipment market will remain relatively unaffected by changes in either of these two factors. The speed at which HDTV is introduced will directly affect the size of all three market segments.

Although the subscription growth is expected to be slow, the incremental investment to offer IPTV is low, making it an attractive service offering for the traditional telephone companies. Dittberner believes that developing truly compelling service differentiation could speed up IPTV�s market penetration. The report lays out the case for IPTV as a compelling service offering that will ultimately have a major impact on the design of public networks and the way Service Providers do business.

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