Telecoms operators looking to replace dwindling revenues from voice calls are set to invest more in Internet TV this year, raising total spending on wired infrastructure by 1.6 per cent to $41 billion, iSuppli forecast. The market research firm said on Thursday global spending on telecoms equipment would reach a temporary peak this year but the 1.6-per cent forecast rise looked anaemic in comparison with increases of 10.7 per cent in 2006 and 8.3 per cent in 2005.
Of the $41 billion, iSuppli estimates telcos will spend $9 billion on IPTV-related equipment, increasing investments in their core networks to provide the bandwidth and service necessary to support Internet TV. ISuppli forecasts the number of IPTV subscribers worldwide will surge to 105.8 million by 2011 from 3.4 million in 2006. By 2011, IPTV budgets will rise to account for 20 per cent of telcos' total capital spending, iSuppli predicts.
"The telcos' massive investments in IPTV infrastructure reflect their desperation in the face of the historic decline of their core business in voice communications," iSuppli said. "The telcos hope their massive investments in IP broadband networks and IPTV will pay dividends in terms of a new source of revenue from providing video and other multimedia services to consumers," iSuppli analyst Steve Rago said in a statement.
ISuppli said North America and Europe, with the fastest establishment of IPTV services, would be the main beneficiaries of increased carrier expenditure. In developing nations, carriers would also increase spending as they aimed to make more money from data, iSuppli said, wihle in Japan spending would decline as deployment of fibre to the home slows.
Source: Expressindia.com
Of the $41 billion, iSuppli estimates telcos will spend $9 billion on IPTV-related equipment, increasing investments in their core networks to provide the bandwidth and service necessary to support Internet TV. ISuppli forecasts the number of IPTV subscribers worldwide will surge to 105.8 million by 2011 from 3.4 million in 2006. By 2011, IPTV budgets will rise to account for 20 per cent of telcos' total capital spending, iSuppli predicts.
"The telcos' massive investments in IPTV infrastructure reflect their desperation in the face of the historic decline of their core business in voice communications," iSuppli said. "The telcos hope their massive investments in IP broadband networks and IPTV will pay dividends in terms of a new source of revenue from providing video and other multimedia services to consumers," iSuppli analyst Steve Rago said in a statement.
ISuppli said North America and Europe, with the fastest establishment of IPTV services, would be the main beneficiaries of increased carrier expenditure. In developing nations, carriers would also increase spending as they aimed to make more money from data, iSuppli said, wihle in Japan spending would decline as deployment of fibre to the home slows.
Source: Expressindia.com