Consumer broadband service revenues up 81%

LONDON - The market for consumer broadband value-added services (BVAS) grew by 81% during 2006, according to analyst firm Point Topic.

Accounting for $16.3bn in revenues last year, BVAS now earns over a quarter as much as basic broadband access. The five highest earning services were security, VoIP telephony, online gaming, home networks and music.
The fourth edition of the Point Topic report, entitled ‘The consumer BVAS market’, found that the BVAS sector was growing far more steeply than the number of broadband lines (which grew by 34%) or broadband access revenues (which rose by 32% to $71bn).
The report also noted that VoIP services, the second highest earner in 2006, had overtaken security by mid-2007 to claim the number one spot. In France, for example, VoIP accounted for a quarter of all telephony traffic by the end of 2006.
Report author John Bosnell, senior analyst at Point Topic, said: “Value-added services are making an increasingly valuable contribution to overall broadband revenues. Our research shows that broadband value-added services were contributing an extra 30% to basic access revenues by the end of 2006.”

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