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In-Stat: Internet Content Changing Home Networking Picture for Providers (15/5/2007)

Service providers can attain greater average revenue per user (ARPU) growth by enhancing existing voice, data and video services, and through bundling services and expanding the overall broadband customer base, reports In-Stat. The excitement around IP Multimedia Subsystem (IMS) is based on the premise that an intelligent, converged network will open up market opportunities for many new services and applications, the high-tech market research firm says. Home networking plays a fundamental role in these emerging markets.

"Service providers need to acknowledge that Internet content is permanently changing consumers' views on content value and pricing," says Keith Nissen, In-Stat analyst. "With regard to converged applications, providers need to understand that consumers will not pay twice for the same content, or duplicative services. Consumers will not necessarily pay extra for convergence that does not offer greater convenience and value."

Recent research by In-Stat found the following:

-- Home networks will be a hybrid of wireless, Ethernet, telephone and coax cabling.

service providers in 2007, growing to $3.5 billion in 2011.

-- By 2011, home-networking services will add only $4 to monthly ARPU.

The research, "Consumer Converged Services: Opportunities for Service Providers" (#IN0703543WWI), examines the development of the home networking market and assesses the revenue opportunities available to network service providers. It includes a forecast for revenue from home networking applications in the US through 2011, and analyzes the top 10 home networking applications. This research references data from multiple In-Stat end-user surveys conducted during 2006 and early 2007.

www.in-stat.com