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$6B Multi-Tenant Market for IPTV Services

The hotel and multi-dwelling unit (MDU) markets (apartments and condos) will provide a significant growth opportunity to the IPTV market, according to the latest market study by In-Stat.

IPTV will offer growth opportunities to service providers serving high density environments like apartments, and will serve as a differentiator for properties that make it available.

The market for IPTV services to high density deployments such as apartments will exceed $6 billion worldwide by 2013.

The hotel market is more difficult in the short term as the economic downturn makes securing the capital necessary to support deployments more challenging than in the MDU segment. Bookings and revenues are down. Thus hotels may be less willing to finance network upgrades to support IPTV in the near term.

"Deploying IPTV in the MDU market is a good bet for service providers," says Amy Cravens, In-Stat analyst. "Deploying IPTV in high density environments offers significant cost savings compared to single-family housing markets. In this economy, services providers are looking to maximize the return for every infrastructure investment dollar, and MDU deployments provide just that."

In-Stat's market study found the following:

- Nearly 70 percent of MDU IPTV in the U.S. will be deployed with Fiber to the Home (FTTH).

- The slump in single-family housing is prompting providers to shift interest to the MDU.

- Regionally, Asia-Pacific is the largest opportunity for subscriber growth in the MDU.

- While the MDU offers significant advantages for the provider after securing access to the building, negotiating entry can be difficult.

- Competitors BNS, Guest-Tek, iBAHN, LodgeNet, and Verizon are among those targeting the Hospitality and MDU market for IPTV.

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