New research shows broadband value added services generated nearly $26 billion worldwide last year. That’s an increase of 62 percent from the year before. The study was done by Point Topic.
“We estimate that value added services were 10 percent of total broadband revenues, which includes subscriptions in 2003, but by the end of 2007 that has increased to over 30 percent. As it gets harder to make a profit in the hyper competitive line rental market, the operators and suppliers have to look to add value and revenue with their service offerings,” said John Bosnell, senior analyst at Point Topic.
Fifty-six percent of the service revenues come from VoIP and security. Online gaming, home networks, music downloads and video over broadband also contribute to the rising numbers.
“The success story of 2007 has been VOIP. Overall revenue has very nearly doubled, average revenue per user (ARPU) is up and take up in major markets, particularly North America and Western Europe, is growing quickly,” said Bosnell.
Bosnell expects VoIP will continue to grow.