Consumer Broadband Revenues Seen Doubling In One Year - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

07:20 AM

Consumer Broadband Revenues Seen Doubling In One Year

Consumer broadband service providers more than doubled their revenue during last year, from an annual rate of about $3.3 billion worldwide in early 2004 to $6.9 billion by the end of December 2004.

LONDON — Consumer broadband service providers more than doubled their revenues during last year, from an annual rate of about $3.3 billion worldwide in early 2004 to be worth $6.9 billion by the end of December 2004.

The figures were revealed in a just released report from Point Topic, the London based market research group that tracks the broadband business worldwide.

"Most value-added services delivered over broadband increased in both users and total revenues. Services such as video over broadband, music and voice over IP (VoIP) all grew strongly" said John Bosnell, senior analyst at Point Topic and lead author of the report on the Consumer BVAS market.

According to the report the number of consumer broadband lines grew about 45 percent to 131 million, while consumer broadband access revenues increased by about 22 percent to $39 billion.

Price cuts by both DSL and cable operators were partly to blame for revenues growing slower than the number of lines.

The report suggests that by early 2005, consumer value-added services were adding an extra 18 percent to access revenues compared with only 10 percent a year earlier. For 2004 as a whole, Point Topic estimates that consumer BVAS revenues were about $4.9 billion, while access revenues for the year were about $35 billion.

The main contributions to growth in value terms came from security, IP telephony and home networks. Bosnell notes that IP telephony as a substantial application is especially significant as it is a true application of broadband rather than a supporting tool.

The biggest percentage growth was in Internet voice (which Point Topic defines as a separate application from IP telephony), music downloads and video-over-broadband.

"Video-over-broadband increased subscriber numbers tenfold during 2004. After substantial investments, this is good news for many operators. But it should be noted that the average revenue per user (ARPU) has reduced since the beginning of the year, as many subscribers are relatively new and are using just the entry-level basic TV service" says Bosnell.

While operators have on average reduced broadband service charges, the ARPU for BVAS has increased, from a worldwide average rate of $37 per year at the beginning of 2004 to $52 by the beginning of 2005, a gain of 40 percent.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

IT Leadership: 10 Ways to Unleash Enterprise Innovation
Lisa Morgan, Freelance Writer,  6/8/2021
Preparing for the Upcoming Quantum Computing Revolution
John Edwards, Technology Journalist & Author,  6/3/2021
How SolarWinds Changed Cybersecurity Leadership's Priorities
Jessica Davis, Senior Editor, Enterprise Apps,  5/26/2021
Register for InformationWeek Newsletters
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll