Report: North American residential services to hit $271 billion by 2014

Fri, 07/02/2010 - 8:00am
Mike Robuck

Triple play residential services revenue remained steady at $240 million last year in North America despite the economy, but its projected to grow to $271 billion by 2014.

According to a recent report by Infonetics Research, service provider revenue from voice services—including VoIP and mobile voice—decreased 5 percent in 2009, while broadband access and video service revenue increased 5 percent and 6 percent, respectively.

"The residential services market is in rapid transition. The decline of traditional fixed-line voice service and the rise of broadband access, video, and mobile data is speeding up," said Diane Myers, Infonetics Research's directing analyst for service provider VoIP and IMS. "PC-based mobile broadband subscribers will surpass all other types of Internet access subscribers by 2013. If telecom operators aren't able to provide competitive mobile services, they will be at a significant disadvantage.

"Now that residential voice and Internet services are no longer tied to a physical household, operators can (and should) customize services for individual members of a household and compete on a nationwide basis versus a specific fixed territory,"

Other highlights from the report included:

  • Broadband access is the true growth engine for residential services, with annual revenue for North American service providers expected to grow at a 13 percent compound annual growth rate (CAGR) from 2009 to 2014, driven by both fixed and mobile broadband solutions
  • 55 percent of all residential mobile subscribers in North America are customers of either AT&T or Verizon
  • The turf ware between cable operators and satellite providers for video services continues, with the dominating cable operators losing some revenue market share to satellite (DBS) and telco IPTV providers in 2009
  • Comcast leads in North American residential video service revenue share while DirecTV and Dish Network jumped ahead of Time Warner Cable in 2009
  • Video services represent significant future revenue for service providers, but it comes at a high cost of programming and lower margins than voice services

More Broadband Direct 7/02/10:

•  CED Blog: Update on Shaw's FTTH trials
•  Time Warner Cable dials up VoiceZone in Carolinas region
•  Liberty Media to spin off operations
•  Spanish MSO picks TiVo for set-top software
•  Obama touts latest round of broadband stimulus
•  Frontier closes $5.3B deal for Verizon phone lines
•  Report: North American residential services to hit $271 billion by 2014

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