Study: Value-added broadband living up to its name

Services like voice over IP and IPTV are doing for broadband service provider bottom lines exactly what those carriers had hoped — adding a big chunk of value-added revenue, according to the latest report from market research firm Point Topic.

The firm’s “Consumer Broadband Value Added Services” report says BVAS revenue grew by 30%, from $39.6 billion to $48.9 billion, during 2009. That’s more than twice the rate — 14% —that sign-ups for broadband lines achieved last year and good news at a time when broadband subscriber growth has been slowing for most carriers.

Basic subscription revenue margins also are dwindling, and Point Topic said the research data strengthens the argument for operators to launch bundled services over their broadband lines.

There were 417 million broadband lines at the end of 2009, compared to about 366 million at the end of 2008, according to Point Topic. Standard subscription revenue from those lines amounted to about $129 billion, so value-added service revenue lived up to its name, contributing an additional revenue boost of almost 38%.

Overall, subscribers to value-added services also were up by about 13% in 2009.

IPTV and VoIP may be the most obvious value-added broadband services, but the category also includes applications like home security, online gaming and content downloads.