It has proven challenging to get payoff from IPTV investments. The average revenue per IPTV subscriber varies broadly between markets and as a consequence, so does return of investments. In the Asian market, only a handful of the countries have yet to deploy IPTV services, but its role as a major revenue growth driver is still clear. Pyramid Research expects a compound annual growth rate in the 30%+ range for the period 2008-2014. No other broadband service gets even close to this growth rate, reports Light Reading.
CAGR for Asia-Pacific Telecom Services, 2008-2014

Source: Pyramid Research, as reported by Light Reading
The recent IPTV Asia Forum gathered players from China, Japan and South Korea, and while some of the comments focus on the negatives, it is clear that the number of subscribers are growing and that there is significant interest in the technology. In Japan, Hikari TV, the IPTV offering from NTT, is reporting 750,000 subscribers, and China is reporting 3 million subscribers.
The IPTV hype a few years back is gone. This is a good thing. At the time, the average copper-based connection couldn’t fulfil the underlying promise. The level of user interaction was no better than what cable or digital terrestrial could offer. And the quality and availability of the service was not on par with the competitive distribution methods. In short the user experience was not compelling enough.
With the new generation IPTV infrastructure, with mobile broadband and unified fiber access, IPTV will get another chance. Consumers tend to get what they want at the end of the day. And great content at the finger tips will always be compelling.
When the user experience is greatly improved, we will see a quick shift to IPTV.
by Per Lembre on Dec. 8th, 2009
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