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Video is Driving the Residential Services Market

Infonetics Research released excerpts from its latest North American residential voice, data, and video services market study and forecast. There's a growing upside to the video services opportunity, with the transition from increased competition, that will gain new momentum in 2011.

"Considering that revenue from video services will rival that of voice services by 2014, one of the more interesting trends going on in the residential services market is the number of video subscribers that are jumping from cable to satellite and telco IPTV," says Diane Myers, directing analyst at Infonetics Research.

In 2010, residential cable video subscriber numbers are flat, while satellite video subscribers have been increasing slowly but surely over the last few years, and telco IPTV subscribers are up 40 percent from last year.

Myers notes, "Video services are proving to be a hard fought battle. While cable operators have a legacy in North America, they have been unbending in their pricing policies, and as a result are losing record number of subscribers to less expensive alternatives."

Highlights from the Infonetics market study include:

- Telecom service providers are bringing in $245.5 billion from North American households subscribing to voice, video, and Internet access services in 2010.

- This represents a 2.1 percent increase in revenue over 2009.

- Infonetics expects the residential services market to grow to $270 billion in 2014, as revenue from voice services declines while broadband access and video service revenue increases.

- The number of residential mobile broadband subscribers in North America is nearly doubling in 2010 over 2009, to about 15 million, and is forecast by Infonetics to jump to 70 million by 2014.

- In the first half of 2010, AT&T leads in residential mobile voice service revenue with 29 percent, Verizon is second with 26 prercent.

- When mobile voice subscribers are counted, the shares are reversed, with Verizon leading with 29 percent, AT&T second with 26 percent (AT&T generates more revenue per subscriber).

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