Service providers spending nearly 40% of capex on triple play

Infonetics:Global. Service providers around the globe see triple play services not merely as a means of increasing top-line revenue, but as a means of self-preservation. Network operators are redefining and realigning themselves to be the one-stop shop for all things digital for residential and enterprise subscribers, and they believe triple play services will give them the competitive edge they need to succeed.

Take as evidence the fact that North American, European, and Asia Pacific service providers participating in the study: report that on average nearly 40% of their capital expenditures were spent on triple play network equipment in 2005.

The majority of service providers in the study plan to further increase capex spending in the next 12 months on IPTV equipment, broadband CPE, broadband aggregation equipment, and voice over broadband equipment, and they expect revenue growth in all areas of triple play services in the next 12 months.

And a big chunk of revenue it is: The average percent of total company revenue from triple play services ranges from 43% to 48% between 2005 and 2007.

With nearly 40% of their capex budgets going to triple play service infrastructure, service providers are sending a clear message that the combination of voice, data, and video services is a long-term differentiator for them. Carriers are demanding complete interoperability, full standards compliance, and an open and flexible architecture from their suppliers to ensure the content and services they provide will work right out of the box and far into the future.

IP voice is a big draw for triple play providers, but it's video that's really the newest, most exciting, and most technically challenging part of triple play services, and IPTV is where all the action is. In fact, all but one of Infonetics' service provider respondents already offer IPTV, and that one offers it by 2007.

--  The top 2 drivers for respondent service providers deploying triple
  play services are 1) increased broadband revenue per user and 2) new
  revenue streams
--  58% of respondent service providers rate vendor interoperability a key
  technical challenge when rolling out triple play services
--  The most pressing business challenge triple play service providers
  face is securing broadcast and on-demand video content; acquiring content
  is also a challenge
--  iTV (interactive TV) is the fastest growing video service offered by
  service providers, bringing Internet capabilities directly to the TV
  screen, including instant messaging, shop at home, click to call and click
  to purchase capabilities, and, most significantly, online gaming services.
--  2/3 will deploy IP/Ethernet DSLAMs by 2007
--  67% rate low cost very important when considering IP set top box
  features
--  Though more respondents currently use Cisco for their triple play
  aggregation, when it comes to unaided brand awareness for triple play
  infrastructure providers, Alcatel leads Cisco, and Microsoft is third


Triple play?WikipediaRed Viking 

Service Provider Plans for IP Triple Play

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