Ian Cox, Broadband Specialist at Juniper, said "Broadband penetration has now grown to a level where the industry is on the verge of a revolution, as it is now economically attractive to launch value-added services to a mass audience".
The challenge to service providers will be to provision these new services as cost effectively as possible as traditional revenue streams from existing fixed-line voice services continue to decline. Flat-rate IP based voice tariffs will gradually replace time and distance related tariffs. These declines may, to a certain extent, be off-set by a reduction in operating costs for converged networks.
Although much attention has been paid to the more complex and 'sexy' value-added services like video-on-demand and on-line games, it appears that the biggest opportunity will be in voice services as broadband IP-voice takes over from traditional circuit-switched voice; driven by lower operating costs and competition between incumbents and new licensed operators.
- Service providers need to take advantage of the opportunity provided by broadband value-added services to protect their profitability and move as quickly as possible to a converged network.
- Equipment vendors need to have in place fully integrated systems in order to provide truly 'one-stop' shop solutions to providers.
- Content providers need to prepare for this on-going revolution by re-purposing and protecting their content for digital distribution, or risk losing market presence.
Juniper Research Ltd.