Telco TV Driving IP/DSL Set Top Box Sales

In-Stat Increasing deployments of TV services by telco operators are boosting the IP/DSL set top box market. As a result, shipments of IP/DSL set top boxes will grow from 1.7 million in 2004 to 16.9 million in 2009 At that point, this market will surpass the digital cable set top box market in size. Despite the market’s great opportunities, In-Stat believes it cannot support the number of currently participating vendors. There are over 80 vendors offering IP/DSL set top boxes today,. That’s too many vendors for a market of this size. Only about 25 of them have telco customers.

• Free was the top supplier of IP/DSL set top boxes in 2004.

• IP/DSL set top box Average Selling Prices (ASPs) are highest in the Americas due to the desire for DVR, HD, and multi-room boxes in North America.

• The greatest technology shift in IP/DSL set top boxes is the move to advanced video compression, which requires more memory and more powerful video decoders than MPEG-2.

IP/DSL Set Top Box Market Overflowing, with Vendors Publ. 20051017