Frost & Sullivan: IPTV down, not out

Almost a full decade into the IPTV generation finds million of telco customers around the world using IPTV services, but a current and near-term slowing of growth after several years of large-scale, heavily-promoted launches. Research firm Frost & Sullivan has revised a three-year compound annual growth rate forecast it issued last year from 29 percent growth down to about 15 percent CAGR during that period.

"Telecom operators believed they had found the next killer application after the IPTV debut in 2000," a Frost & Sullivan press release reads. "Since growing almost 85% from less than 3 million subscribers in 2006, to 5.5 million in 2007, adoption rates are slowing steadily. Experts predict a weak economic atmosphere through 2010."

However, Yiru Zhong, an analyst for Frost & Sullivan's Information & Communication Technologies group, further states, "A disappointing IPTV performance is not the end of the road for telecom incumbents, but it has spurred new service creation and more innovative business models across the value chain. As end user media consumption patterns change, both telcos and broadcasters face a window of opportunity to invest and/or collaborate to meet the evolving user demand."

Zhong said telecom operators can answer an increasing need for high quality and more secure content "by enabling a communication network with varying QoS at different price levels. This is an important change in order to compensate for the decline in bundled service margins." Zhing envisions such capabilities strengthening IPTV's ability to contribute a larger percentage of revenue to telcos' overall retail revenues.

For more:
- Here's the Frost & Sullivan press release

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