The number of telco TV subscribers is poised to grow by more than 100 percent in 2004 as DSL and VSDL technologies become more and more viable as a video transport medium, predicts In-Stat/MDR.
Telcos that tackle TV are being buoyed by higher data rates and advanced, bandwidth-saving compression technologies, said In-Stat, a sister company to CED magazine. Those advanced codes will enable DSL operators to offering high-definition streams with 8 Mbps pipes rather than at 15 Mbps, In-Stat said.
Although some telcos can erase the bandwidth question completely by installing fiber-to-the-home, RBOCs such as Verizon plan to complement their fiber-rich networks with a video overlay.
Growing competition, of course, is another main driver for telco TV’s rising growth.
“Competitive threats and fixed line revenue pressures are encouraging telcos to become active in offering digital TV to their subscribers,” said In-Stat/MDR Senior Analyst Michelle Abraham, in a release. “The possibility of gaining an additional $60 per month in revenue, while becoming less likely to lose $30 a month to your competition, is an important factor in the business base.”
In-Stat published its findings in a new report titled “Telco TV Takes Off.”
