Broadband News

Broadband add-ons worth $60 billion in 2010

Analyst firm, Point Topic, are reporting that value-added services generated $60 billion worldwide to broadband subscriptions in 2010, adding 37% to broadband subscription fees during 2010. The largest revenue generators of this were Voice over IP (VoIP) telephony services, security products, and IPTV, adding to an average broadband value-added services (BVAS) of $10.20 on top of the average monthly broadband subscription charge of $28 (approximately £18). Total broadband access revenues increase from $129 billion at the end of 2009 to $157 billion by the end of 2010, a 14% increase. Over the same period, the value-added services increased from $48.8 billion to $57.5 billion.

"These results suggest a levelling in value-added services and demonstrate that broadband add-ons are not growing as fast as they were, despite continued growing revenues.

The trend we've observed since 2003 reflects the fact that more people are doing more things via their broadband connection. We estimate that at the end of 2010 each broadband line supported an average of 1.95 value-added services. That's almost 4 times the average in 2003.

It remains to be seen how much, if at all, the figure for 2011 will go up after the slight slowdown in 2010. The pressures on household budgets have already seen some services decline in some markets but we expect such reductions to be limited and short term."

John Bosnell, (Senior Analyst) Point Topic

VoIP was the most valuable service to add-on, with revenues reaching some $17 billion worldwide. This excludes Skype, as most people use it as a free service, which generated revenue of around $859 million in 2010. Online gaming took forth place, with music downloads 6th, behind 'home networks'.

In the UK, an economy downturn has perhaps helped to increase the value-added service revenue, with people opting to stay at home and rent movies online or through their TV service, rather than going out to the cinema, in a move to try and save money.


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