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Study: IPTV Market to Top $6 Billion by 2013

By Vivek Naik, TMCnet Contributor

In-Stat reportedly has estimated that the IPTV (News - Alert) market should exceed the $ 6 billion mark by 2013, due to the migration of families from single premise ownership to Multi Dwelling Units, such as apartment blocks and condominiums.

 

With a rise in demand for MDUs, it becomes easier and financially more viable for IP service providers to set up infrastructural requirements in high density and grouped dwellings. Though hotels are similarly clustered temporary nesting places and therefore should be ideal an target segment, they are not figure too significantly in the report since the hospitality industry has been severely hit due to the current recession.

 

Hoteliers are therefore unwilling to spend on such an investment, which looks like having an extended gestation period that’s totally detrimental to planned and relatively quick revenue yield.

 

“Deploying IPTV in the MDU market is a ‘no brainer’ for service providers,” says Amy Cravens, an analyst at In-Stat (News - Alert). “Deploying IPTV in high density environments offers significant cost savings compared to single-family housing markets. In this economy, services providers are looking to maximize the return for every infrastructure investment dollar, and MDU deployments provide just that.”

 

The report indicates that those MDU’s that do not have structured and preferred in-wall and multiple outlets per room IP connectivity could very loose out on takers. This line of thinking is well aligned with the massive global demand for IP related technologies and products, as reported by TMCnet, and trends indicate that an IP link will soon become a residential essential to join others such as gas, electricity, water and it could very well replace the conventional telphone as we know it now.

 

The research threw up some interesting statistics and facts, including: Fiber to the home will account for more than 70 percent of MDU IPTV; the main global market will be the Asia Pacific region; access to existing MDU’s is comparatively simple when compared with converting or transforming infrastructure to accommodate high speed IP; and, main competing companies will be BNS, Guest-Tek, iBAHN, LodgeNet, and Verizon.

 

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Vivek Naik is a contributing editor for TMCnet. To read more of Vivek's articles, please visit his columnist page.

Edited by Michael Dinan