IPTV Technology Featured Article

Synergy Reports IPTV Revenue Grew 47 Percent in 2007

By Nathesh, TMCnet Contributing Editor

Synergy (News - Alert) Research Group released a study report on the IPTV market, stating that in 2007 it grew aggressively at 47 percent. The mentioned market share includes the overall IPTV (News - Alert) equipment revenue, from the core of the network to the set-top box.

 

Synergy Research Group is a provider of quarterly market share, analysis, and forecasting services to the Telecom, Mobile and Networking Industries.

 

The Synergy 2007 IPTV Market Share report finds that there is a significant increase in investment by service providers to provide next generation television services. They are keen to maintain a lead in this growing network capability. As cable companies have successfully taken a bite out of the service provider's telephone and broadband Internet business, service providers are making the necessary investments to get a slice of the massive TV market.

 

Nowadays, all providers are working their own triple-play or quadruple-play strategies, new competition is coming from non-facility operators who deliver services that will operate over provider networks. The result is that service providers face constant pressure to improve margins, reduce costs, and increase their average revenue per user (ARPU) with integrated, higher-value multimedia services.

 

From a market share perspective, Cisco (News - Alert) continues to dominate the IPTV market by receiving 59 percent of this total IPTV CAPEX spend. It is followed by Alcatel-Lucent, capturing 13 percent of the revenue, and Motorola (News - Alert) with 11 percent. Juniper's share was 10 percent.

 

The aggressive growth in IPTV equipment revenue continues to be driven by upgrades to carrier networks, especially at the Edge. Such investments are increasing the velocity of Carrier Ethernet deployments. And also by using a network foundation built upon Carrier Ethernet, service providers can better integrate network operations that collapse broadband remote-access servers’ quadruple play and FMC (fixed and mobile telephony convergence) functions into a single, integrated device that sits at the edge of the network.

 

The lower costs associated with Carrier Ethernet continue to drive service provider's decisions to deliver IPTV using Carrier Ethernet at the Edge of their next-generation network.

 

"IPTV has transitioned from a forward-thinking play to an essential strategy for Service Providers to counter competitive forces and pursue lucrative revenue opportunities," says Ray Mota (News - Alert), Ph.D., Chief Research Officer at Synergy Research Group. "This continues to translate into dollars spent on infrastructure equipment providing intelligence and service delivery at the Edge of the Service Provider's network."

 

For more information please visit www.srgresearch.com

 

Nathesh is a TMCnet contributing editor.

Internet Protocol Television (IPTV)	X
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Next-Generation Network (NGN)	X
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Ethernet	X
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