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Vendors Still Celebrate the IPTV Bonanza

After a 32 percent jump in sales in the second quarter, worldwide IPTV equipment sales hit $682.5 million in the third quarter of 2007, up 23 percent sequentially, according to the latest Infonetics Research market study.

Likewise, manufacturers of IP set-top boxes (STBs) saw revenue jump 35 percent worldwide in 3Q07 from 2Q07, the Infonetics report shows.

IPTV, in its pure and hybrid forms, continues to grow steadily and is poised for bigger growth as operators clear regulatory hurdles, as MPEG-4 HD set-top boxes become more widely available, and as operators lock up exclusive broadcasting arrangements with professional sports leagues, movie studios, and international programmers.

"We expect the number of IPTV subscribers to continue growing steadily, reaching 65 million worldwide in 2010," said Jeff Heynen, directing analyst for IPTV at Infonetics Research.

Other highlights from the report include:

- Growth in worldwide service provider revenue from IPTV services is expected to grow more than 10-fold in the 5 years between 2006 and 2010.

- Worldwide IPTV middleware revenue is up 1 percent in 3Q07 from 2Q07.

- Motorola leads in the worldwide pure IP STB and hybrid IP/QAM STB markets in 3Q07; Dasan Networks leads the hybrid IP/over-the-air STB market.

- 51 percent of worldwide IPTV equipment revenue in 3Q07 comes from Asia Pacific, 33 percent from EMEA, 16 percent from North America, and 1 percent from CALA.

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