Value-Added Services Vital to Broadband Growth

Oliver Johnson, CEO of Point Topic, a leading industry analyst firm, predicted recently that consumer value-added services will more than triple, from $125 billion worldwide in 2011 to $420 billion in 2020. These types of services are important to provider revenues worldwide, and as competition reduces margins in the basic broadband business, their contribution to revenues will become increasingly crucial. While VoIP is currently the top revenue earner, Point Topic expects IPTV to surpass it within eight years. The company also pointed out that growth may not be easy for some services, particularly when faced with competition from online and traditional offline services. Security is one such service; it already has an 85% penetration rate, so growth in this segment will depend on developing alternate security-related services.

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