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IPTV Windfall Continues to Benefit the Vendors

According to a new report from Infonetics Research, IPTV equipment sales, service revenue, subscribers, and service provider capex all posted phenomenal growth in 2006, and are expected to continue surging through 2010.

The report, "IPTV Equipment, Services, Subscribers, and Capex," shows that worldwide IPTV equipment manufacturer revenue jumped 150 percent in 2006, easily passing the $1 billion mark.

While the IPTV equipment market is expected to grow at a more moderate pace in coming years, all categories but one tracked by Infonetics are forecast to at least double or triple between 2006 and 2010.

"IPTV subscribers and service revenue continue to grow around the world, as incumbent telcos have joined their upstart competitors in EMEA and Asia Pacific in rolling out high quality IPTV services. As is typical with early technologies, the geographic disparities in terms of subscriber uptake will be significant -- look no further than France, with its high penetration of IPTV, and Germany, which is just getting underway. The evolving regulatory landscape adds another variable to overall IPTV growth rates," said Jeff Heynen, directing analyst at Infonetics Research.

Global Market Highlights Inlcude:

- The number of IPTV subscribers grew 166 percent in 2006, hitting 7.2 million worldwide, with continued strong growth forecast through 2010.

- IPTV service provider revenue jumped 178 percent in 2006 to $2.8 billion worldwide, with growth expected to continue in the double to triple digits every year worldwide.

- EMEA is the leading region for IPTV service revenue, accounting for 49 percent of the worldwide total in 2006, followed by Asia-Pacific with 35 percent.

- Worldwide IP set-top box revenue dipped a bit in the fourth quarter but nearly tripled from 2005 to 2006, reaching $455 million (up 195 percent).

- Motorola maintains its worldwide lead in the IP set-top box market in 2006; Amino Communications moves up to 2nd place, while Yuxing moves down to 3rd place.

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