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Video services

Europe to Dominate IPTV Growth

LONDON -- IPTV World Forum -- Despite major telco TV projects in North America, Europe will lead the IPTV revolution during this decade, boasting more than 40 percent of the world's telco TV subscribers and generating nearly half of the sector's revenues by 2010, according to projections from research house Multimedia Research Group (MRG) Inc.

The projections coincided with the commercial debut of TVlaunch, the IPTV service of Danish incumbent TDC A/S (Copenhagen: TDC), which counts Alcatel-Lucent (NYSE: ALU) and Microsoft Corp. (Nasdaq: MSFT) as its main telco TV technology partners. (See TDC Launches IPTV Service and Alcatel Lands TDC IPTV Deal.)

Speaking here in London this morning, MRG president Gary Schultz predicted that, by 2010, there will be 50.7 million IPTV subscribers in 2010, compared with fewer than 10 million in 2006.

By the end of 2010, Europe will have 21.3 million telco TV subscribers, or 42 percent of the total base, with Asia/Pacific just behind on 19.2 million, or 38 percent of the global market.

North America, meanwhile, is on course to have just 8.8 million IPTV subscribers, or 17 percent of the total market, according to MRG’s projections, even though some of the continent’s largest telcos -- AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ) -- have already launched their services. (See AT&T Stands By U-verse Projections and Verizon to Pump $18B Into FiOS by 2010.)

The rest of the world will have just 1.5 million telco TV subs, about 3 percent of the global total.

The research house also predicts that global revenues from IPTV services will hit $12.8 billion in 2010, from less than $2 billion in 2006. Europe and North America, with their higher average revenues per user, will account for the lion's share of those revenues, said Schultz.

Western Europe’s 21.3 million IPTV users will generate $5.1 billion of those revenues, with two French service providers, Orange (NYSE: FTE) and Iliad (Euronext: ILD), being the region’s biggest players. Telecom Italia (TIM) , Telefónica SA (NYSE: TEF), and Deutsche Telekom AG (NYSE: DT) will make up the rest of the Top Five players.

— Ray Le Maistre, International News Editor, Light Reading

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