iptv market trends triple play symposium tuesday, june 13 | dallas presented by michael howard...

IPTV Market Trends

Triple Play SymposiumTuesday, June 13 | Dallas

Presented by Michael Howard

Co-Founder and Principal AnalystInfonetics Research, Inc.

+1 408.583.3351 [email protected] www.infonetics.com

Copyright © 2006 by Infonetics Research, Inc.2

Worldwide IPTV Capex Forecast

Worldwide Total IPTV Capex Forecast: Content & Transport

$26B

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

CY05 CY06 CY07 CY08 CY09

Calendar Year

Cap

ex

($M

) ContentInfrastructure

TransportInfrastructure

• Transport infrastructure includes PON, xDSL, edge, routers, optical, etc.

• Content infrastructure includes encoders, VOD servers, other headend devices, set top boxes

© 2006 Infonetics Research, IPTV Equipment, Services, and Subscribers


Worldwide IPTV Subscriber Forecast

53M

0

10

20

30

40

50

60

Su

bs

cri

be

rs (

M)


Calendar Year

Worldwide IPTV Subscribers

© 2006 Infonetics Research, IPTV Equipment, Services, and Subscribers


Broadband Subscriber Forecast

• Strong competition:− NA: cable vs DSL vs PON− AP: PON vs DSL − EMEA: DSL vs cable

• IPTV subscribers WW− 2009 54M

245

70

22

99

41

1.5

0

50

100

150

200

250

300

350

Su

bs

cri

be

rs (

M)

CY04 CY05 CY06 CY07 CY08 CY09

Year

DSL Cable Broadband PON

With permission: Copyright © 2006 by Infonetics Research, Inc., DSL Aggregation Hardware Quarterly Worldwide Market Share and Forecasts


Worldwide IPTV Revenue Forecast

$37B

$0

$10,000

$20,000

$30,000

$40,000

Re

ve

nu

e (

$M

)


Calendar Year

Worldwide IPTV Service Revenue

• Includes monthly subscriptions plus add-ons like VOD and PVR• Does not include advertising revenue• Multi-year payback period for larger telcos

@ 2006 Infonetics Research, IPTV Equipment, Services, and Subscribers


IP Triple Play Respondent Overview

• May06 study: Service Provider Plans for IP Triple Play: North America, Europe, and Asia Pacific 2006

• Respondents must offer IP triple play services by 2007

• 83% of respondents are primary decision-makers or have a lot of influence

Geographic Location

North America41.7%

Europe41.7%

Asia Pacific16.7%

Triple play is defined as the combination and bundling of voice over broadband/VoIP, video (IPTV, broadcast TV, video on

demand, etc.), and high speed data (Internet)


Respondent Types

IPTV Business Drivers

8%

25%

33%

33%

42%

42%

0%

0% 10% 20% 30% 40% 50%

Demand fromcustomers

Broader market appeal

Service bundling forcustomer retention

Make up for fixed linetelephone revenue loss

Competition (MSOs,satellite operators, and

alt. providers)

New revenue streams

Increase broadbandsubscriber ARPU

Bu

sin

es

s D

riv

ers

Percent of Respondents


Respondent Types

Technical Challenges

• Carrier Ethernet solves challenges

• CE reduces interoperability problems

• CE has multiple QoS options to deliver quality subscriber experience

• CE is scalable

42%

42%

58%

33%

0% 20% 40% 60%

Scaling the servicenetwork infrastructure

to mass market

Managing QoS foreach

subscriber and/orservice

Digital rightsmanagement for video

content

Interoperabilitybetween multiple

products

Te

ch

nic

al

Ch

all

en

ge

s

Percent of Respondents Rating 6 or 7


Questions?


References

• PON, FTTH, EADs Market Size and Forecasts, 2006

• DSL Aggregation Equipment Market Size and Forecasts, 2006

• IPTV Market Outlook, 2006

• Service Provider Plans for IP Triple Play: North America, Europe, and Asia Pacific 2006

Thank You

Presented by Michael Howard

Co-Founder and Principal AnalystInfonetics Research, Inc.

+1 408.583.3351 [email protected] www.infonetics.com

iptv market trends triple play symposium tuesday, june 13 | dallas presented by michael howard...

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