Broadband Drives Growth in Residential Telecom Revenues

  • Broadband Penetration
sep09infonetics2Campbell, CA – Driven by broadband access, North American service providers’ revenue for residential voice, video and data services reached $261 billion in 2008 and will grow to $300 billion in 2013, according to communications market research firm Infonetics Research.

“With the residential services market forecast to reach $300 billion by 2013, fueled by broadband and video services, we are expecting a hard-fought battle between the ILECs and the cable operators,” observes Diane Myers, Infonetics Research’s directing analyst for service provider VoIP and IMS.

Report highlights:

  • Broadband access represents the true growth engine for residential services, with North American revenue growing at a 12 percent average annual rate from 2008 to 2013.

  • By 2011, the video services market will surpass the voice services market, but will be marked by high programming costs and tight margins.

  • Comcast and DIRECTV are in a tight battle in the residential video services segment, with Comcast holding on to the lead in 2008 by just 2 points.

  • Through its FiOS service, Verizon captures the majority of North American IPTV subscribers (54 percent) in 2008. (Verizon’s FiOS TV uses RF for linear programming and IPTV for video on demand and interactive services.)

  • In 2008, wireline Internet access (e.g., dial-up, cable broadband, DSL, FTTH) had 64 percent household penetration in North America.

  • Revenue derived by service providers and cable companies for IPTV, cable video and satellite video services is forecast to grow to $142 million in 2013 in North America.

  • The percentage of North American households with traditional phone lines (PSTN voice service) is forecast to drop from 69 percent in 2007 to just 26 percent by 2013, as consumers opt for mobile-only services or VoIP alternatives.

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