According to DITTBERNER's recently released
report "1Q07 Global Broadband Subscriber Survey", Telco IPTV subscribers
grew 13% to 5.4 Million in 1Q07. Telco IPTV is delivered over a LOOP, a
PON or P2P fiber access network. PCCW with 800,000 subscribers was the
largest Telco IPTV operator. Second place France Telecom is not far behind
at 769,000 and is likely to overtake PCCW by the third quarter.
While France is the country with the most
subscribers, Hong Kong, when treated separately from China, has the
highest penetration of the entire Broadband Subscriber base at 55.6%. The
top ten countries and their penetration rate are shown below:
Hong Kong has a high penetration rate because
it has a developed infrastructure with short average LOOP length allowing
virtually all the inhabitants to be able to receive IPTV service. With
only about 40% of the DSL lines being good enough for TV service, the real
penetration in France is about 25% of the addressable market. France's |
lead reflects the leadership of its
operators in the IPTV market, which is a product of both the intense
competition between DSL service providers, as well as the lack of
competition from Cable TV operators.
The Sub-region, Western Europe, still
dominates the IPTV market but its share is down from its 68% six
months ago. Asia's market share has increased from 28% to 41% over the
same time, largely due to growth in China and Japan.
North America increased its share from 2%
to 5%, but that is mostly due to growth at the small independent
operators. However, this may soon change as AT&T's U-verse service is
rolled-out. Although the success at IPTV is not likely to impact its
Cable operator competitors much in the next year, it should push the
USA into the ranks of the top ten Telco IPTV markets. AT&T could then
be the largest Winluce (Microsoft/Alcatel-Lucent) customer.
"The fact that China has finally awarded
licenses for IPTV means |
that it will grow quickly and probably come to
dominate the market at 7 Million IPTV subscribers within two years," says
James Heath, Research Director at Dittberner. "Japan is likely to have
good growth and may challenge China for a while, but North America, with
its entrenched TV operators, will be a slow roll." |
IPTV is on the way to becoming an accepted
strategy for most service providers. Now the business of making it
profitable will be the goal, and customer service will be the focus. |
Founded in 1966, DITTBERNER is
an international market research and consultancy with over 70 Telecom
Service Providers, and in excess of 100 telecom suppliers as clients. The
firm specializes in areas of OSS/BSS, NGN Switching, Broadband Access, and
Wireless market segments. For further information on this topic or to
learn more about the on-going DITTBERNER's multi-client subscription
programs, please contact us at info@dittberner.com or visit the company's
website at www.Dittberner.com Tel: +1 (888) 652-8382 Fax: +1 (301)
657-8084 |
DITTBERNER's Broadband Study
is an ongoing market research service updated quarterly, designed to track
the BBxDSL and BBFTTX vendors and their potential. The study constitutes
of business cases, case studies, and market forecast. For carriers, the
Broadband Study provides lessons learned and vendor selection advice to
lower decision-making risk. Vendors learn about carrier priorities,
competitive threats, and niche market opportunities. |