SCOTTSDALE, Ariz. -- A large number of headends have been built in 2005 and 2006 to support increasing telco TV deployments, and the wide availability of H.264 compression equipment in 2006 has prompted telcos that were waiting, to move forward with deployment plans, reports In-Stat (http://www.in-stat.com). Growth in telco TV deployments and subscribers will result in the building of more than 800 headends between 2005 and 2010, the high-tech market research firm says. Upgrades to take advantage of technology advances will further fuel the telco TV headend boom.

“Much of the near-term upgrade revenue will come from telcos that are adding HD channels to their existing SD channel lineup,” says Michelle Abraham, In-Stat analyst. “In 2009 and 2010, we expect telcos to replace equipment that is 4–5 years old, as compression algorithms will have improved to make the bandwidth savings worth spending the money.”

In-Stat