Tier 1 telcos 'stealing the IPTV honey'

Tier 1 telcos around the world will have a predicted 40.1mn IPTV subscribers by the end of 2014, according to a new report from IMS Research, accounting for the majority of subscribers by the end of the forecast period.

Rebecca Kurlak, Research Analyst at IMS Research and author of the report, said: “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. Not only will AT&T and France Telecom continue to see uptake in their acquisition of subscribers, but China Telecom, BBTV, NTT, Free, Neuf Cegetel, Telefonica’s Imagenio and BT will also see extraordinary uptake of their IPTV services.”

In regards to smaller telcos, Ms. Kurlak added: “Tier 2 and 3 telcos will continue to experience subscriber growth as well. In 2008, Tier 2 and Tier 3 telcos comprised almost 46% 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 23mn TV households by the end of 2014, half the potential of what Tier 1 telcos are anticipated to achieve.”