Tier 1 telcos dominate IPTV

An IMS Research study has revealed that IPTV deployments globally are largely attributed to tier 1 telcos. By the end of 2014, IMS Research forecasts 40.1 million TV households will be subscribers of Tier 1 telco IPTV services.

Rebecca Kurlak, research analyst and author of the study, states, "Tier 1 telcos have the advantages of both scalability and the imminent opportunity for solid ROI that has placed forerunners like AT&T and France Telecom in a very compelling position in the pay-TV environment."

In regards to smaller telcos she notes, "Tier 2 and 3 telcos will continue to experience subscriber growth as well. In 2008, tier 2 and tier 3 telcos comprised almost 46 per cent of subscribers. Throughout the forecast, the larger telcos will essentially be stealing honey from the smaller telcos bee hives by providing more services, deeper discounts and more compelling content from major studios. Hence the reason why the small telcos will only garner close to 23 million TV households by the end of 2014, half the potential of what Tier 1 telcos are anticipated to achieve."