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MUMBAI: Consumer value added services (Vas) are set to triple
from $125 billion worldwide in 2011 to $420 billion in 2020.
This
was the predication made at the recently concluded trade event
CommunicAsia 2012 in Singapore by Point Topic CEO Oliver Johnson.
Point Topic is an industry analyst firm for global broadband
statistics, information and reports.
As competition reduces margins in the basic broadband business,
and with increasing penetration of broadband value-added services,
their contribution to revenues is becoming increasingly more
important.
VoIP
is currently the top revenue earner. However, Point Topic
predicts
that this will be trumped by IPTV by 2020.
Johnson
also pointed out that growth may not be easy for some services,
particularly when faced with competition from online and traditional
offline services.
Johnson
said, "Development may be harder for some markets than
other. For example, security already has a penetration rate
of over 85%, so being able to grow this further will depend
on developing other security related services, or on the advent
of a virulent and destructive online threat."
Access
revenues, subscriptions charged for a broadband service, are
similarly a tough area to grow revenue, especially as saturation
permeates through more and more markets.
Offering
the right bundles for their consumers in a particular market,
signing the right deals and maintaining a customer base in
the face of global competition will be the mark of a successful
ISP in the next few years. Get it wrong and they won’t
see growth – get it right and their prize will be an
income base worth several multiples of its yearly value.
"Challenges
lie ahead for all and the internet can be fickle, but the
right player with the right service, or more likely set of
services, has the chance to sweep all before them," concluded
Johnson.
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