Parks Associates: Value-Added Services Key to Broadband Revenue

  • Broadband Penetration
  • Home Automation
  • Security
DALLAS --Value-added services are the lifeline for future growth and revenues for global broadband providers, who must find ways to stay competitive as broadband services reach saturation levels, according to international research firm Parks Associates.

With broadband penetration exceeding 90 percent in South Korea, 75 percent in many countries in Northern Europe and 66 percent in the U.S., broadband service providers cannot add customers as quickly as they could in years past.

“Many operators in North America and Western Europe see the squeeze coming,” says Brett Sappington, senior analyst, Parks Associates. “Initiatives by global ISPs include remote health services, home security, energy monitoring and entertainment services. Premium technical support is also an opportunity for growth, but the appetite for fee-based services varies among different cultures. While consumers in North America are more widely accepting of premium support services, Asian consumers are sensitive to fee-based support, believing it is part of the basic service."

In the U.S., 52 percent of broadband consumers are interested in premium technical support services from their broadband provider; 43 percent are interested in home monitoring and security services.

Verizon is conducting trials of a home automation and control service unveiled at CES 2011. Home security offerings include IP-based cameras that stream video to an iPhone and fully monitored security systems that notify security guards when an alarm is tripped. AT&T, Comcast, Orange, J:Com, and SK Telecom have announced or currently offer automation or home security services.

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