Skip to main content

VAS Will Drive Broadband Revenue Growth

The addition of incremental value-added services (VAS), such as TV-based caller ID and home monitoring, to basic triple-play service bundles in the U.S. will boost monthly revenue per subscriber to $206 by 2010, according to Parks Associates.

By definition, a bundle features any combination of landline voice, wireless voice, high-speed Internet, or television from a single service provider. Current revenue per subscriber from triple-play bundled services is $148 per month.

"The bundled services market is becoming increasingly crowded with service providers, including cable MSOs and telcos, all offering similar combinations to consumers," said Deepa Iyer, research analyst at Parks Associates. "At present, competitors are struggling to differentiate beyond aggressive price cuts and catchy promotions. At the same time, customers place a premium on specific value-added services, so naturally broadband carriers are going to use these features as key competitive differentiators."

While the market for value-added television and high-speed Internet services is in an early stage of development, such services will serve as entry points for providers to create "consumer-centric" user experiences.

The Parks study finds that 31 of broadband consumers intend to add TV-related value-added services to their bundle. Furthermore, 41 percent of broadband consumers are interested in adding supplementary services to their Internet subscriptions as a part of their bundled service package. Parks Associates estimates this interest will intensify in the next five years and these supplemental services will generate $10.7 billion in revenues by 2010.

"An integrated set of services that match consumer interests can transform the so-called commodity services - voice, high-speed data, and TV - into enhanced user experiences," Iyer said. "While simple services like caller ID on a TV or a discounted satellite radio subscription will start the transition to 'My World' user experiences, enhanced value-adds such as home monitoring via the TV or online storage backup solutions for consumer-generated content will augment this new value proposition for consumers."

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of