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IPTV Big on Promise, But Small on Adoption

IPTV has become one of the most discussed topics in the consumer telecoms space over the past 12 months, and for good reason.

France was the first country to break the 1 million IPTV subscriber barrier with 4 percent of household penetration. At the end of 2006, Hong Kong had 758,000 IPTV customers with 35 percent household penetration.

By 2011 Ovum estimates that there will be over 55 million IPTV subscribers worldwide. However, with a total TV market of over 1.2 billion households, it still represents a small portion of the TV industry.

In the developed world, revenues from consumer fixed telephony services are generally declining. Developing a successful value-added service business is essential for future revenue growth for wireline operators. Of such services IPTV is currently one of the promising opportunities.

That said, IPTV is still big on promise, but relatively small on global market adoption.

Findings from the market study include:

- IPTV is driving next-generation access. Driven by competitive market forces, there is a trend in the broadband access market towards greater speeds.

- The investment required for IPTV infrastructure is high. With the reliance on partners such as content owners to provide service, real profitability could be scarce.

- Over-the-top (OTT) TV content is picking up in popularity. With the arrival of big brands, it can no longer be ignored by IPTV service providers.

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