Telcos to reap benefits of TV growth

Michael Carroll | May 20, 2010

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Telecoms operators stand to gain the most from a forecast 7% rise in global pay TV revenues in 2010, according to ABI Research.

The firm said growing fixed-line broadband penetration and higher access speeds offered by fiber has resulted in telco’s revenues growing faster than traditional cable TV companies, with the lion’s share – 59% - going to telcos in Western Europe.

Although telecoms firm’s share of total revenues are still relatively small – ABI predicts they will generate $17 billion (€13.6 billion) in 2010 out of a total of $310 billion -, the figures will keep growing as telcos launch HDTV services.

However, all pay TV players will have to work hard to cash-in on the global growth.

“Operators need to aggressively promote the purchase of HDTV set top boxes in order to lift ARPU,” research associate Khin Sandi Lynn notes, adding. “Carriers could do a better job of promoting the benefits of HD for the end-user viewing experience.”

Earlier this week, France Telecom’s CEO Stephane Richard said TV services were one of the key areas he would like to invest in over the next five years, and UK subsidiary Orange is reportedly keen to resurrect plans for a pay TV service in the country now its merger with T-Mobile is complete.

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Michael Carroll