(3 January 2007 6:00 pm)

MUMBAI: California-based market research firm iSuppli has released a study that predicts that the number of subscribers to Internet Protocol Television (IPTV) services worldwide is expected to nearly triple in 2007.

This will help drive a strong increase in sales of wired communications equipment and related semiconductors for the year.

Global IPTV subscribers will reach 14.5 million in 2007, up 192.4 per cent from 4.9 million in 2006, iSuppli predicts. By 2010, worldwide IPTV subscribers will amount to 63 million

The study notes that in the long run, the Asia Pacific region will lead the global revolution in IPTV in terms of subscribers, service revenue, infrastructure etc. The region’s broadband penetration, supportive regulatory framework, will fuel the growth.

China has potential; The US will be a difficult market for IPTV: Worldwide IPTV service revenue is forecast to reach $ 38 billion in the year 2009. The worldwide IPTV subscribers are forecasted to reach 53 million in the year 2009. The Americas and Western Europe are expected to be the biggest markets in terms of revenue per user basis.

IPTV market potential varies highly across the world depending upon the local Pay-TV market and regulatory conditions. China will be the future IPTV dragon due to rapid urbanisation, fast growing economy and expanding middle class.

The US will be a more difficult market for IPTV, due to high existing pay-TV penetration, and stiff price and service competition that is likely to come from the entrenched operators in the cable and satellite sectors. Consumer familiarity with IPTV service is very low although youth today are much more aware of it when compared with people belonging to other age groups. In terms of the principal barriers to IPTV adoption, the cost is by far and away the most significant factor across all countries and age groups.